Article title next to a 3d figure of papers with money symbol and a calculator
The discussion about what changes with the Tax Reform is a topic that has permeated political and economic debates for decades. Brazil has one of the most complex tax systems in the world, which directly impacts the competitiveness of companies , job creation and the country's economic and social development.
Significant progress has recently been made with the approval of the Tax Reform regulations . This article explores the concept of the tax system, the relevance of the reform, what was established in the regulations, its expected impacts, and the political context of the vote.
What does Tax System mean?
The tax system is the set of rules, laws and constitutional senegal mobile database provisions that govern the collection of taxes, fees and contributions in a country. It is essential for financing government activities, such as health, education, infrastructure and security.
In Brazil, the system is organized into three spheres: federal, state and municipal, each with its own powers.
Male hands operating a calculator to illustrate the complexity of calculating taxes in Brazil
Brazil has one of the most complex tax systems in the world. Credits: Freepik
The main taxes include:
Federal : Income Tax (IR), Contribution to the Financing of Social Security (Cofins) and Tax on Industrialized Products (IPI).
State : Tax on the Circulation of Goods and Services (ICMS) and Tax on Ownership of Motor Vehicles (IPVA).
Municipal : Tax on Services (ISS) and Urban Property and Land Tax (IPTU).
Despite its importance, the complexity and bureaucracy of the Brazilian tax system creates significant challenges for companies and taxpayers, highlighting the need for reform.