Tax Clipping | Stay Up to Date with the Highlights

This week’s edition of the BVZ Tax Clipping brings together relevant updates that continue to shape the landscape of tax compliance, tax planning, and risk management amid the transition of the Brazilian tax system.

Among the week’s highlights:

Tax Reform
– The State of São Paulo confirmed that IBS and CBS will be included in the ICMS tax base as of 2027, signaling the stance of state tax authorities during the coexistence period between the taxes.
– The IBS Management Committee extended until February 15, 2026, the deadline for completing the formal stages of adhesion to the pilot project of the new tax.

Tax Settlements
– The State of Rio de Janeiro extended until April 8, 2026, the deadline for joining the REFIS-RJ program, offering significant reductions in fines, interest, and legal charges.

Tax Updates
– The Federal Court granted an injunction suspending the 10% increase in IRPJ and CSLL rates under the Presumed Profit regime, based on principles of legality and legal certainty.
– CONFAZ extended the validity of 285 ICMS agreements related to state tax incentives.
– The Brazilian Federal Revenue Service clarified the rules for applying reduced IRPJ and CSLL rates to hospital services.
– The Federal Revenue Service published a Questions and Answers guide on the linear reduction of tax incentives and benefits provided for under Supplementary Law No. 224/2025.
– The Federal Revenue Service detailed the limits for deducting sports and cultural incentive contributions for IRPJ purposes.
– CARF reaffirmed that bookkeeping entries in SPED, by themselves, do not constitute a tax credit.
– The Federal Court in São Paulo granted a new deadline for the approval of the distribution of profits and dividends for 2025.
– Microentrepreneurs have until January 31 to regularize outstanding issues and return to the Simples Nacional regime.

We continue to closely monitor the regulatory, administrative, and judicial developments that directly impact business decisions in an environment of transition and increasing tax complexity.

Access the full edition for more information.