Tax Reform | Federal Audit Court proposes an 11.3% tax rate for the CBS

We would like to inform you that on October 28, the Federal Audit Court (TCU) proposed a reference rate of 11.3% for the Social Contribution on Goods and Services (CBS). The new tax was created as part of the Tax Reform and will replace the PIS/Pasep and Cofins taxes.

This proposal will now be sent to the Senate, which will have until December 15 to review it and set the tax rate. Market expectations for this rate were around 9%.

It is important to note that the reference rate will not necessarily be applied starting in 2027.

This is a parameter intended to maintain the level of tax revenue, taking into account the loss of revenue from the replaced taxes. The Federal Government may establish a different rate; if it does not, then the reference rate will apply.

Another item awaited by the market, which has also now been defined, was the reduction factor to be applied to the IBS and CBS tax rates on government purchases, set at 44.16% by the TCU for procurement by direct public administration bodies, autonomous agencies, and public foundations.

Support for Tax Reform Compliance

DPC is available to advise your company and assist with the process of adapting to the new requirements. Please contact us: dpc@dpc.com.br.