Key findings:

• • • • Strategic blind spots remain — Despite widespread awareness, many tax firms have yet to fully assess the operational or financial impact of the reform, highlighting the need for more proactive planning as changes approach.

      • Technology investment leads the way — Firms are prioritizing technology and now are beginning to complement these efforts with increased attention to staff training and client support, aiming for a more balanced and complete transition.

      • Client guidance is gaining momentum — While clients will be among the most affected, professionals are recognizing the urgency of providing clearer communication and tailored support to help clients navigate the reform more confidently.

Brazil’s tax, audit & accounting sector is on the verge of a historic transformation. The country’s new tax reform, approved by the National Congress, will gradually unify several existing taxes into a dual value-added tax (VAT) system. The reform aims to simplify compliance, promote transparency, and help citizens better understand how public resources are allocated.

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Brazil Tax Reform for Tax Firm Professionals 2025

So how prepared are Brazil’s tax & accounting professionals for this upcoming shift? A new report from the ³ÉÈËVRÊÓƵ Institute reveals a gap between awareness and action. While most professionals understand the reform and its implications, only a minority have moved into active preparation. Only a small group of firms have established internal teams or concrete plans; however, many others are now beginning to shift from passive monitoring to more decisive steps.

Definitions: Incipient: I am aware of the Tax Reform, but I am not keeping up with the changes. Beginner: I am following updates through the press and reports to evaluate information that fits the firm’s and customers’ profile. Preparatory: I have an internal working group and/or a developing plan. Advanced: I have allocated resources and a transition project in progress. Leader: I have the structure prepared for the transition and I am working with my team and external providers to anticipate our adaptation.

The reform is expected to impact core areas of tax, audit & accounting work — including tax calculation, pricing strategies, and advisory services. Professionals widely acknowledge these areas will be disrupted and are starting to take steps to assess and prepare for the changes. Technology investment is accelerating, with many firms upgrading systems and digital infrastructure to meet new requirements. At the same time, there is growing recognition that staff training and client education must advance in parallel to ensure a successful transition.

Many professionals have expressed a need for more resources and structured plans to help them guide clients through the reform, especially as they face changes in tax burdens, pricing structures, and compliance requirements. Encouragingly, firms are beginning to respond — developing communication strategies and training programs to better support both their teams and their clients.

You can download a full copy of the ³ÉÈËVRÊÓƵ Institute’s “Brazil Tax Reform for Tax Firm Professionals 2025” in Portuguese here

One major area still evolving is the financial planning around the reform. Despite the potential for significant operational changes, most organizations have yet to estimate the cost of adaptation. As new requirements take effect, understanding and preparing for these costs will be essential to avoiding unexpected disruptions.

Opinions on the reform’s complexity remain divided. Some professionals expect simplification, while others anticipate greater difficulty in tax and accounting practices. This uncertainty only reinforces the importance of ongoing monitoring and the development of flexible strategies.

While technology remains a central focus, the sector is now beginning to align its efforts — recognizing that human capabilities and client engagement are equally essential. The transition is no longer just about systems and infrastructure, but also about empowering their professionals and building trust. Firms are taking steps to ensure that their teams are prepared and their clients are supported, thereby laying the groundwork for a more complete and resilient transformation.

You can download

a full copy of the English-language version of the ³ÉÈËVRÊÓƵ Institute’s “Brazil Tax Reform for Tax Firm Professionals 2025” by filling out the form below:

Key findings:

• • • Law firms are preparing, but many lack a full strategy — While most legal professionals in Brazil have engaged in technical reading, nearly half of firms still have no formal plan for the 2026 tax reform changes.

    • Technology readiness is high, but talent gaps persist — Brazilian law firms are investing in digital tools, yet more than half of legal professionals admit their colleagues are not prepared to manage the regulatory changes due to insufficient training.

    • Client risks are rising, but awareness is uneven — Increased tax burdens and legislative complexity are major concerns for clients and their legal counsel, yet many clients remain underprepared.

Brazil is entering a new chapter in its fiscal history. With a sweeping tax reform regime set to begin in 2026, the country is preparing to simplify its complex tax system by introducing a dual value-added tax (VAT) model. This reform replaces multiple existing taxes with a more streamlined structure, aiming to improve transparency, reduce bureaucracy, and create a more predictable environment for businesses and citizens alike.

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Brazil Tax Reform for Law Firm Professionals 2025

For law firms, this reform represents both a challenge and an opportunity. Many legal professionals and their firms are being called upon to act as guides, helping clients navigate a new and unfamiliar legal landscape. Many professionals have already begun preparing by studying the new legislation and participating in training sessions. However, their early efforts alone won’t be enough.

However, the real test will come in how firms translate their professionals’ knowledge into action by building internal capabilities, advising clients effectively, and adapting firm strategies to meet the demands of a changing system.

The pressure is already being felt. Legal professionals are seeing shifts in their daily work, with more questions, more complexity, and more demand for guidance from their clients. As Brazil’s tax reform progresses, this demand is expected to grow, placing even greater importance on preparation and foresight. Law firms that wait too long to act may find themselves overwhelmed, while those that invest early in the right tools and talent will be in a better position to lead.

Not surprisingly, technology is playing a key role in this transition. Legal professionals are turning to digital platforms that help simulate tax scenarios, interpret new rules, and provide real-time insights. These tools are becoming essential for firms that want to stay ahead of the curve. 

You can download a full copy of the ³ÉÈËVRÊÓƵ Institute’s “Brazil Tax Reform for Law Firm Professionals 2025” in Portuguese here

However, technology alone isn’t enough. The human element — skilled professionals who understand both the law and the needs of their clients — remains a critical piece of this solution. Without the right talent in place, even the most advanced systems can fall short.

Clients, too, are facing uncertainty. The new tax structure introduces unfamiliar rules and potential risks, from increased tax burdens to challenges in interpreting the law. Many already are looking to their legal advisors for clarity and direction. This makes it even more important for law firms and their professionals to be proactive — not just reacting to questions, but anticipating needs, educating clients, and offering strategic guidance.

The road ahead will not be easy. The reform is complex, and its full impact will unfold over several years; but it also offers a rare opportunity to modernize Brazil’s tax system and strengthen the legal infrastructure that supports it.

Those law firms that embrace this moment — by investing in talent, adopting smart technologies, and engaging clients with intention — will not only survive the transition but emerge stronger on the other side.

You can download

a full copy of the ³ÉÈËVRÊÓƵ Institute’s “Brazil Tax Reform for Law Firm Professionals 2025” by filling out the form below:

Key takeaways:

• • • Technology leads the way — Companies are prioritizing system upgrades and digital tax management tools to meet new compliance demands under the 2025 reform.

    • Strategic planning is key — Early adopters are integrating reform into their business strategies, while others risk disruption by delaying action.

    • Talent development follows infrastructure — Workforce training is expected to grow as organizations solidify their systems and prepare for long-term success.

Corporate tax departments in Brazil are responding to the country’s sweeping tax reform in myriad ways, upgrading their abilities in both talent and infrastructure, according to a new report from the ³ÉÈËVRÊÓƵ Institute. This reform, approved by Brazil’s National Congress in late-2023, marks a significant departure from the country’s historically fragmented tax system and aims to simplify compliance and improve efficiency across federal, state, and local levels.

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Brazil Tax Reform for Corporate Professionals 2025

At the heart of the reform is the introduction of a dual Value-Added Tax (VAT) structure — comprising the Goods and Services Tax (IBS) and the Contribution on Goods and Services (CBS) — alongside a new excise tax (IS) targeting products with health or environmental implications. These changes are expected to reshape how companies manage tax obligations, credits, and incentives, particularly as the reform phases in between 2026 and 2032.

This new report draws on survey responses from professionals in corporate tax departments across Brazil, offering a snapshot of how organizations are preparing for the transition. While some companies remain in early planning stages, others have already begun adapting their systems and strategies. The report’s findings suggest a growing awareness of the reform’s potential impact and a shift from passive observation to active preparation.

Corporate response in motion

One of the most consistent themes across the report is the prioritization of technology. As Brazilian companies prepare for new tax structures and digital compliance requirements, many are investing in system upgrades and modern tax management solutions. These efforts include refining enterprise resource planning (ERP) systems and their ensuring infrastructure can accommodate new electronic tax documentation formats. The report shows that technology is not just a support function — it’s emerging as the backbone of reform readiness.

Also, the report highlights a clear divide between organizations that are proactively preparing and those that are still waiting for greater regulatory clarity. Early movers are integrating reform considerations into their strategic planning and positioning themselves to turn regulatory change into competitive advantage. Meanwhile, companies that delay action may face higher costs, operational disruption, and even legal risks as deadlines approach.

You can access a full copy of the ³ÉÈËVRÊÓƵ Institute’s “Brazil Tax Reform for Corporate Professionals 2025” in Portuguese here

While talent development is acknowledged as important, it currently trails behind technology and strategy in most organizations’ reform plans. Companies appear to be focusing first on system upgrades and compliance frameworks, suggesting workforce training is expected to follow once foundational changes are in place. However, there is growing recognition that skilled personnel will be essential for sustaining success under the new tax regime. The report suggests that nurturing in-house talent — rather than relying solely on external hires — will be key to the long-term resilience of corporate tax functions and their organizations.

Preparing for transition

Brazil’s sweeping tax reform is reshaping the priorities and operations of the country’s companies and their corporate tax departments. As organizations prepare for the transition, tax professionals across the industry are focusing on strategies that combine regulatory awareness, technological modernization, and strategic investment.

As departments seek to upgrade their tax systems, refine financial planning, and gradually expand their talent development initiatives, they are positioning themselves to navigate the reform with confidence. By aligning internal capabilities with external expertise and embracing automation, our research shows that many corporate tax teams are taking a structured, forward-looking approach that will be essential to ensure compliance, minimize disruption, and unlock long-term efficiencies in Brazil’s evolving tax landscape.

You can download

a full copy of the English-language version of the ³ÉÈËVRÊÓƵ Institute’s “Brazil Tax Reform for Corporate Professionals 2025” by filling out the form below:

The report, , gathered the opinions of 179 tax & accounting professionals in Brazil though an online survey in which these professionals were asked about their perspective on a number of reform-related issues, including how ready they feel for the transition, their satisfaction with the support received from their firms, and how the reform will impact them both positively and negatively.

They also were asked to estimate their firms’ adjustments in investment and budget in the short- and medium-terms due to the reform. (The new report is a companion piece to TRI’s previous report on the impact of Brazil’s tax reform on corporate tax departments, which came out in August.)

Key findings

The survey for the report on tax & accounting professionals was conducted in April and May of this year, and most of the respondents said that their firms had not yet begun implementing actions in response to the tax reform. According to these professionals, their firms were still in the process of collecting information and assessing how the reform might affect their operations. However, more than 60% of respondents said that they expect a high or very high impact of the reform in their businesses.

Tax & accounting professionals surveyed for the report identified both benefits and challenges from the transformative change brought by the reform plans. More than half of respondents agreed that the simplification of ancillary obligations, a decrease in the tax burden, and greater clarity in tax and fiscal planning will be positive changes. By contrast, respondents cited an overload of work during the transition period between existing and new tax models, a potential rise in the tax burden, and increased costs to learn, adapt, and change firms’ systems to comply with the new rules as the biggest challenges brought by the reform.

You can hear on a special edition of the ³ÉÈËVRÊÓƵ Institute Insights podcast on Spotify (in Portuguese).

Not surprisingly, the majority of respondents said they anticipated their firms would increase investment in talent training, process updating, and tax management solutions within the first six months of the reform. This trend is expected to continue over the next two years, with talent training, process updating, and accounting management solutions being key areas of focus and investment.

These findings suggest that many tax & accounting firms in Brazil have already begun investing in human capital, anticipating that enhanced investment in process updating and tax management solutions will support their professionals during the transition to the new tax regime.

Regarding expectations for their firms’ tax management solutions and the role of those systems in the tax reform, tax & accounting professionals noted the two most important aspects of these systems during the transition period will be: i) keeping up with continuous updates with the new rules; and ii) increasing automation and accuracy in the systems’ ability to do tax calculations and assessments as well as generate ancillary obligations.

Conclusion

The new report shows that as Brazil’s tax reform plans being to have an impact local tax & accounting firms will need to plan and adopt strategies such as keeping abreast of regulatory changes, make use of technology and automation, and reallocate resources to areas like talent development and tax management systems, among other initiatives.

And the way to ensure a smooth transition, according to the opinions of the tax professionals who will be at the forefront of this change, will be for tax & accounting firms to prepare in advance in order to better position themselves to face the obstacles and leverage the opportunities that the tax reform will bring.

You can access the ³ÉÈËVRÊÓƵ Institute’s report here.

Consequently, individuals and businesses may seek ways and their own AI-driven tools to help them minimize risk and fulfill their compliance obligations. Additionally, the substantial changes to tax rules because of the nation’s planned Tax Reform have generated a large amount of rapidly evolving information, making it difficult for people to stay informed about all the new developments and understand the impact on their businesses.

Numerous studies have demonstrated that technology is a cornerstone for growth, development and progress, contributing importantly to enhancing productivity and fostering innovation within different sectors of the economy. Particular to the tax industry, evidence from studies has shown that for various tax administration tasks delivers positive results in compliance, efficiency, and revenue.

Professionals in corporate tax departments will likely bet on technologies to help them transition to the new model, becoming more efficient with their time, while minimizing risks and reducing human errors.

Nonetheless, other studies have aimed to analyze within the tax industry that, in some cases, prevent the realization of technology’s full potential. The barriers include insufficient technological infrastructure and connectivity, reluctance or resistance from taxpayers and tax collectors, inadequate institutional integration, and an unsupportive regulatory environment.

The origin of some of these challenges lies within the government sphere, so tech users in the tax industry may not have the ability to address all of these concerns on their own. However, one challenge they can tackle is the lack of adoption or resistance. Specifically, in the context of the Tax Reform’s many upcoming changes, tax professionals, tax & accounting firms, and in-house corporate tax departments in Brazil may want to adopt a proactive approach towards technology to help the professionals there work better and faster.

The Brazil Tax Reform and the tech outlook

A recent report from the ³ÉÈËVRÊÓƵ Institute provides insights about corporate tax professionals’ awareness and preparedness for the Tax Reform in Brazil. According to survey findings from the Brazil Tax Reform: Insights, challenges and opportunities for corporate tax professionals report, the most cited concerns among professionals in corporate tax departments about the Reform plans are the overload of work and increased costs to learn and adapt their current tax management systems to the new rules during the transition period from the old tax model to the new one.

While technology and AI may not help professionals solve these negative impacts completely, they can help facilitate the transition substantially. In fact, the report also finds that, given the Tax Reform plans, tax professionals’ expectations around their tax management systems converged on two primary abilities: i) increased automation and accuracy in updated tax calculations, generation of ancillary obligations, and tax assessment; and ii) agility in implementing new SPEDs (Brazil’s Public System of Digital Bookkeeping) and electronic tax documents.

Indeed, professionals in corporate tax departments will likely bet on technologies to help them transition to the new model, becoming more efficient with their time, while minimizing risks and reducing human errors. Research results from the report on investment expectations in tax management solutions showed that at least 50% of respondents said they anticipate a sustained and significant growth in their departments’ investment during the first four years of the reform. Additionally, two-fifths of respondents projected that increased investment in these systems will continue beyond the first four years, extending until the end of the Tax Reform’s transition period in 2033.

At least 50% of survey respondents said they anticipate a sustained and significant growth in their tax departments’ investment during the first four years of the reform.

With the significant changes brought by Brazil’s Tax Reform plans, a successful transition will demand more than just new and adapted tech systems and solutions. To fully capture the benefits of technology, organizations will need to develop an integrated and strategic plan of action.

Many tax professionals are well aware of this, as the report shows, and they also expect their organizations to increase investment in talent, training, external consultancy, and process updating during the transition period. Therefore, in addition to leveraging tech systems, organizations and their internal tax departments will need to keep up with new rules and developments, train their talent, collaborate internally with other areas such as legal, compliance, and finance, and externally with experts and advisors.

Through this approach, corporate tax professionals will be better able to lead and navigate their businesses optimally through the transformative changes that Brazil is experiencing.

You can download a copy of the ³ÉÈËVRÊÓƵ Institute’s recent Brazil Tax Reform report here.

The novel tax reform in Brazil has been designed to resolve certain matters such as high tax rates, complex tax compliance, and conflicting taxes at different levels of government. The proposed changes in the system will seek to improve the efficiency of tax collection, reduce disputes, and create a more equitable system for both businesses and individuals. As the reform will affect various sectors of the economy, it is crucial to gauge the perspectives of tax professionals in Brazil regarding these alterations.

A new report by the ³ÉÈËVRÊÓƵ Institute, , analyzes corporate tax professionals’ opinions about this transformative change. The report is based on a survey that was conducted to look at Brazilian corporate tax professionals’ perspectives, including their awareness and readiness for the tax reform, their satisfaction levels, and any ongoing actions to assess the reform’s impact in their businesses. Additionally, the report examines the level of importance of tax management systems in the transition as well as professionals’ expectations around their corporations’ investment plans and budget support.

Overall, the report provides a comprehensive insight of how corporate tax departments in Brazil may be preparing for and coping with the imminent changes — both positive and negative — that will be brought by the tax reform.

Key findings

By the time the survey was held (April-May 2024), respondents had indicated that their organizations hadn’t started to take actions yet regarding the tax reform and were still gathering information and evaluating the reform’s impact on their activities. Still, the effect of the reform will likely be high in corporate tax departments, survey results suggest.

One of the main objectives of the reform is to substitute current tax structures for a dual Value-Added Tax (VAT) composed of the Goods and Services Tax (IBS) and the Contribution on Goods and Services (CBS). Indeed, survey respondents said that the replacement of old taxes by IBS and CBS would have the greatest impact on their organizations, and they also identified ICMS tax incentives as an important development brought by the reform.

According to the report, some of the changes to the tax system are seen as beneficial, while others are perceived as obstacles. In fact, many corporate professionals said they anticipated more simplified ancillary obligations and reduced tax complexity in their work processes. However, the greatest difficulties identified by respondents were an increase in tax burdens and higher costs associated with adapting to the new rules, including system changes and the necessary learning curve. Another important concern among respondents turned out to be a potential workload increase caused by the transition between the old and new systems.

You can access the ³ÉÈËVRÊÓƵ Institute’s here.

Most respondents said they expect their organization to increase investment in talent training over the coming six months, indicating that organizations will probably focus on improving the skills and quality of personnel managing the transition. Yet, while corporate tax departments should definitely consider talent training as a key strategy for the transition, headcount expansion might also be a smart move because organizations’ team size in planning for the transition surfaced as one of the areas with lowest satisfaction among respondents.

Finally, corporate tax departments are considering leveraging technology tools and systems to optimize time and cost in the transition. Professionals highlighted the importance of tax management solutions, emphasizing the need for these tools to be continuously updated with new rules and increasing the pace of automation of their processes. As for financial planning, respondents said that investment in these solutions is projected to be the top spending priority in their departments over the next six months to two years.

Conclusion

This newly published report explores the impact that the new rules in the tax system in Brazil will have on corporate tax departments. According to many tax industry professionals, some strategies that these tax departments intend to carry out for a successful transition include staying informed of new regulation developments, leveraging technology and automation, and adjusting investment in areas like talent training and tax management systems, among others.

By designing a structured plan of action, corporate tax professionals should be able to adapt to Brazil’s new tax system and secure compliance and efficiency.