Taxation: changes on taxes in Brazil

Brazil´s President Michel Temer continues to push the Fiscal Reform in Brazil, which according to Doing Business report 2016, accounts for more than 60 different taxes and a company spends, in average, 2.600 hours to pay them (in contrast with the Latin American and Caribbean average of 503 hours). The new tax model would, in the long-run, replace 7 federal taxes (IPI, IOF, CSLL, PIS, Pasep, Cofins and Education-Salary), the State Tax on Goods and Services (ICMS) and the Municipal Tax on Services (ISS) with 3 taxes (“Value-Added Tax”, the “Selective Tax” and the “ Social Contribution on Operations and Financial Transactions”). Although the President is ambitious to carry out reforms even in 2017, the changes and improvements are already taking place in a steady manner and are more likely to be a slow and complicated process.