Tax Substitution (ST) is undoubtedly one of the most complex and burdensome aspects of Brazil’s current tax system, and its elimination is one of the most anticipated promises of the Tax Reform. However, at Synchro, we believe it is important to set realistic expectations: the end of this regime will not happen immediately. The transition…

Tax neutrality is the concept that defines the survival of Brazilian companies today. With the official launch of the Dual VAT testing phase and the 0.1% (IBS) and 0.9% (CBS) rates already appearing on invoices, the “magic” of state tax incentives has given way to the cold reality of operational efficiency. The time when companies…