Brazil social security and tax reform developments

Discussions regarding Brazil’s social security and tax landscape have focused on funding sustainability and legal compensation rights.

The National Association of Tax Auditors of the Federal Revenue of Brazil (Anfip) has proposed structural changes to address population aging. Rather than raising retirement ages or worker contribution rates, Anfip suggests expanding revenue by revising tax exemptions and taxing digital platform work. Data from the ‘Análise da Seguridade Social’ publication indicates that while 2025 revenues reached R$ 1.44 trillion, tax exemptions related to social security amounted to R$ 288.1 billion.

In the corporate sector, companies are reviewing National Classification of Economic Activities (CNAE) classifications to identify potential social security tax credits from the previous 60 months, a process made more urgent by the upcoming Brazilian Tax Reform. Concurrently, the Brazilian Supreme Federal Court (STF) is reviewing legal interpretations regarding whether taxpayers can use a writ of mandamus to claim compensation for undue taxes paid in the five years prior to a filing.