Implementation of tax reform in Brazil: impacts, challenges, and opportunities over the next 10 years

Abstract

This study stems from the relevance of Tax Reform Implementation for the national economy, with potential impacts for businesses, consumers, and governments following its implementation. The overall objective of the research sought to analyze the main aspects of tax reform proposals in Brazil, outlining their impacts, challenges, and opportunities for implementation over the next 10 years. The study adopted a qualitative and applied research approach, mapping data through documentary and bibliographic analysis of technical reports, bills, and institutional publications on Tax Reform. The quantitative research involved simulating tax calculations by product and service item using the Tax Reform Calculator provided by the Federal Revenue Service, as well as simulating data from a model company registered with the "Domínio Sistemas" accounting software provided by the State University of Tocantins. The results demonstrated that the Tax Reform tends to simplify the tax collection structure by replacing several taxes with two main taxes (CBS and IBS). The model company's calculations demonstrated that, based on the Tax Reform, in 2027 the company could experience a tax increase of 11.42%, however, in 2033 it could benefit from a reduction of 40.37%. The study highlights that the replacement of old taxes with innovative formats such as IBS and CBS tends to improve tax bureaucratic aspects; however, erroneous tax classifications may unduly burden the taxes calculated. The analysis also investigates how the reform can reshape the work of accounting professionals to stand out in the market and benefit from the opportunities provided by the implementation of the Tax Reform. In summary, the research highlights a substantial change in the Brazilian tax collection pattern, with notable progress towards modernization