The main changes in the new tax reform and their impact on companies
Read about the main changes proposed in the New Tax Reform and how they could affect your company. Find out how to prepare for possible adaptations in your operations and the importance of being up-to-date on the tax scenario.
With the approval of the first phase of the New Tax Reform by the Chamber of Deputies, the issue has been widely discussed in Brazil. Although it still depends on the vote in the Federal Senate, it is essential that companies are aware of the proposed changes, as they could directly affect their operations and the current tax burden.
The New Tax Reform aims, among other things, to simplify the tax system, reduce bureaucracy and create a safer environment for investors, with the potential to boost the country's economy in the medium and long term. However, it is important to remember that each business will be impacted differently, depending on the segment and location in the production chain.
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Substitution of taxes by Goods and Services Tax (GST) and Goods and Services Contribution (CBS)
The main change proposed by the Tax Reform is the progressive replacement of IPI, PIS, CofinsThis measure aims to simplify the tax system and reduce the regulatory burden on the states and municipalities and eliminate the tax war. The aim of this measure is to simplify the tax system, reduce the regulatory burden and eliminate the fiscal war between municipalities and states.
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Sectors with long production chains can benefit
Companies with a longer production chain, such as industry, could benefit from the reform, as it provides for an end to cumulative tax. With the possibility of deducting the tax paid at each stage of production, it is expected that industrial sectors will see a reduction in their tax burden.
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Service sectors could face significant tax increases
Service companies, on the other hand, which have a short production chain, could experience a significant increase in their tax burden. What's more, they won't be able to take credits for the biggest input they have, which is salaried labor. This could have a negative impact on the service sector, which is the largest employer in the country.
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Possible taxation of dividends
Another change that is being considered is the taxation of dividends, which could further aggravate the increase in the tax burden for service companies and self-employed professionals. If the reform includes the taxation of dividends, it is likely that this measure will directly affect the income of service providers.
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The need for companies to adapt
The changes proposed by the New Tax Reform will require companies to adapt and remodel their internal structures to ensure compliance with tax obligations. It is important that companies are prepared for the possible changes to the tax system and that they
seek advice from professionals specializing in accounting and tax law.
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To adapt is to get informed
The New Tax Reform brings prospects of significant changes to the Brazilian tax scenario. Companies should be aware of the proposals under discussion in the Senate and be prepared for possible adaptations in their operations.
It is essential to seek advice from experts in order to understand the specific impact the changes will have on each business and thus guarantee tax compliance and business continuity. Staying up to date on tax changes is essential for efficient financial management and for making strategic decisions that can maximize the company's results.
If you need to rely on experienced accounting advice, capable of providing the best strategies for your company to improve its financial performance, get to know CLM Controller's solutions now.
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