Brazil implements tax compliance program for consumption reform transition

Brazil's Receita Federal and the CGIBS have established the National Tax Compliance Program (PNCT) for 2026 to assist taxpayers during the transition to the new consumption tax model involving IBS and CBS. The program focuses on monitoring and providing guidance to help companies correct inconsistencies in fiscal documents before penalties are applied. To remain eligible for this assisted adaptation, taxpayers must demonstrate active efforts to comply, such as responding to communications and correcting errors by the end of 2026.

The tax reform is also driving significant changes for specific business regimes. For Simples Nacional, the cash basis for monthly tax calculation will be abolished, moving instead to a revenue recognition model based on the issuance of fiscal documents. This change is set to take effect on January 1, 2027. Additionally, companies must now pay closer attention to intra-group pricing, as new rules require transactions between related parties to reflect market values to prevent tax base adjustments.

Experts note that the reform necessitates a strategic overhaul of corporate operations, including the review of long-term contracts to prevent legal disputes and the urgent update of ERP systems and technological infrastructure to handle new calculation and reporting requirements.