Brazilian Tax Reforms Proposed
In tax circles, Brazil is notorious for its complex tax system. You could compare it to the vast, dense, often impenetrable rain forests that dominate its interior, full of assorted critters and creepy-crawlies ready to bite you at the first opportunity. Indeed, Brazil’s tax code is so vast, it’s probably home to a lost tribe or two.
The good news for taxpayers is that several candidates for the Brazilian presidency, to be decided on October 7, 2018, are proposing to reform indirect taxation, an area of the tax regime particularly noted for its mind-boggling complexity, with a more widely understood system of value-added tax. The bad news is that sales tax in Brazil has also proven to be stubbornly resistant to reform. And this is only one aspect of a tax regime which, akin to an expedition in the country’s huge forests, takes the average business an awful lot of time, effort, and resources to navigate.
As a glass-half-full person, I’m optimistic, however, that Brazil can make progress on tax reform, building on recent administrative changes which have helped to move it up the “paying taxes” league table. Stranger things have happened.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look