Brazilian Tax Reform
Advisory to bring your company in line with Brazil’s Consumption Tax Reform. We prepare operations, contracts and tax routines for the new taxation model — IBS (the state and municipal goods and services tax) and CBS (the federal goods and services contribution) — reducing risk and capturing opportunities throughout the transition period.
The AZM team follows every stage of the Tax Reform closely and supports your company through the move to the new system, with a strategy built specifically for your business.
What we do
- Comparative study of the current system against the post-reform consumption tax regime;
- Analysis of credit treatment and a strategy to draw down accumulated credits under both the current and the new taxes;
- Review of the tax aspects of contracts with suppliers and customers;
- Continuous monitoring of regulations, technical notes and normative acts issued by the Federal Revenue Service and the IBS Steering Committee (Comitê Gestor do IBS);
- Ongoing legal review and adjustment of tax planning.
The AZM method
AZM aims to go beyond what clients expect. Our advisory on adapting operations therefore rests on:
- A thorough, in-depth understanding of our clients’ business;
- Real experience with the matters under review;
- Fast, objective communication;
- Transparency and accountability.
The AZM Tax Reform Simulator
The gradual replacement of PIS, COFINS, ICMS and ISS by IBS and CBS changes the tax burden, the use of credits and companies’ cash flow — to a degree that varies with the sector, the product mix and the operating structure of each business.
To support companies through this transition, AZM has developed a simulator that draws on the company’s own SPED files (EFD ICMS/IPI and EFD Contribuições) to quantify the impact of the new model on its actual position — not through generic estimates, but based on your own numbers. In a single diagnostic, we present:
- A comparison of the current tax burden against the projection under IBS/CBS;
- A mapping of debits and credits, highlighting the pressure points in the non-cumulative regime;
- Treatment by NCM code: rate reductions, zero-rating and specific regimes;
- The impact on cash flow across the transition period;
- Consolidation of head office and branches into a single, group-wide view.
Other AZM practice areas
TAX ADVISORY
Day-to-day guidance and support for your business, enabling better decisions on tax matters — including in dealings with the tax authorities.
TAX RECOVERY
The AZM team is ready to help identify opportunities to recover taxes and contributions that were overpaid or paid in error.
TAX GOVERNANCE & COMPLIANCE
Advisory work reviewing the compliance of your company’s tax procedures, together with the management and implementation of governance rules.