The second stage of the Tax Reform implementation is progressing rapidly in Congress, and final approval is expected very soon. There are also changes to the rules governing the Tax on Transfer Causa Mortis and Donations (ITCMD).
By Rafael Maniero
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Legale Overseas, no. 957.
The regulation of the Brazilian Tax Reform on Consumption continues to advance and is becoming increasingly irreversible. The recent approval of Complementary Bill No. 108 of 2024 by the Senate marks the second stage of implementing the new taxation model. The text now returns to the Chamber of Deputies for further analysis, but it already signals profound changes in the Brazilian tax framework.
The bill in question establishes and regulates the Management Committee of the Tax on Goods and Services (IBS), the rules of the new administrative tax litigation system, the revenue distribution rules for subnational entities, the procedures for approving credit balances of the Tax on the Circulation of Goods and Services (ICMS), and introduces changes to the system of the Tax on Transfer Causa Mortis and Donations (ITCMD).
Specifically regarding the ITCMD, the new rules aim to close longstanding debates, such as the transfer of assets abroad, disproportionate corporate acts, debt forgiveness, valuation of transferred assets, among others. In addition, the bill establishes the required progressivity of the tax, which may result in additional burdens for some families.
It is also worth mentioning that the IBS Management Committee will play a key role with the entry into force of the Tax Reform. It will be responsible for various tasks, including tax collection, standardizing the interpretation of tax legislation nationwide, deciding administrative tax litigation cases, and coordinating activities related to tax inspection, among others.
These changes directly affect companies’ operations, which will need to adapt to the new reality brought by the Tax Reform. In fact, organizations will need to review all their operations and planning, as virtually every aspect will be impacted in some way.
There is also a need for systematic verification. As expected, the Federal Revenue Service has been implementing changes to the layout of ancillary tax obligations. A practical example is the guidance on recording the Social Contribution on Goods and Services (CBS), the Tax on Goods and Services (IBS), and the Selective Tax (IS) in the Digital Tax Bookkeeping of ICMS and IPI (EFD ICMS/IPI).
According to version 7.7 of the Frequently Asked Questions, the new taxes should be included in the total amount of the fiscal document in the VL_DOC field of record C100. However, during the 2026 fiscal year — considered a transition period — these amounts should not be included in the document total.
Furthermore, in analytical records, such as the VL_OPR field of record C190, the amounts of CBS, IBS, and IS must be excluded, keeping only the net value of the transaction.
This guidance requires extra attention from accounting and tax professionals, especially regarding adjustments to layouts and system parameterizations. Standardization and consistency of information will be essential to ensure compliance with the new tax model.
Given this scenario, it is essential that companies begin their adaptation processes immediately. The Tax Reform is not merely a legislative change — it redefines the logic of consumption taxation in Brazil. And, like any structural transformation, it requires planning, training, and a review of operational practices.
Vaz de Almeida Advogados is closely monitoring the changes brought by the Tax Reform, combining technical expertise with strategic vision to support companies in adapting to this new fiscal model.
Translation Disclaimer
This document was originally drafted in Portuguese and subsequently translated into English using artificial intelligence (AI).
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