Brazil’s sweeping tax reform is approaching, with a transition interval set from 2026 to 2032. Company tax professionals at multinational firms ought to deal with the complexity and scale of those modifications instantly, collaborate throughout features, and implement the appropriate know-how options. Specialists from Thomson Reuters and KPMG just lately met to share main practices to assist put together for these future modifications.

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Navigating a fancy transition

The dialog highlighted the principle problem of the upcoming transition. Firms must adapt to a brand new tax system that introduces fee modifications, calculation strategies, and bill layouts. They need to put together to satisfy evolving necessities that may impression not solely the tax division but in addition data know-how, finance, and operational groups.

Evaluating calculation strategies between the brand new and current tax methods will likely be difficult, as each will coexist and tax the identical transactions. This can require shut coordination among the many numerous impacted areas to make sure well timed adequation of tax options. With so many shifting components, firms might want to break down silos and interact stakeholders early to drive profitable implementation.

Most individuals within the dialogue admitted they weren’t prepared for the modifications or had been solely considerably prepared and nonetheless engaged on their motion plans. In actual fact, 93 % recognized methods and information as their greatest challenges in making ready for the reform. These findings underscore the pressing want for organizations to undertake sturdy know-how options and develop strategic plans to bridge these gaps.

Influence of the Brazil tax reform

The tax reform will considerably have an effect on company operations, with most firms anticipating a medium to excessive impression.

Whereas the reform goals to simplify the tax system and scale back ancillary obligations, firms could expertise:

• Elevated workloads
• Greater prices for coaching
• Elevated system adaptation bills
• Potential for the next tax burden

To satisfy these new challenges head-on, firms are investing in:

• Expertise coaching
• Exterior consultancy
• Tax administration methods

They count on to make massive investments inside the first six months to 2 years after the reform takes impact.

Expertise: The cornerstone of compliance

The roundtable individuals agreed that enterprises ought to depend on know-how and data-driven options to attain compliance and operational readiness. With new tax calculation strategies and reporting necessities, handbook processes not suffice. Expertise must hold tempo with regulatory modifications and supply actionable insights for enterprise leaders.

Thomson Reuters has made necessary updates to the ONESOURCE Dedication resolution to assist firms adjust to the brand new Brazil tax reform necessities. Moreover, the enhancements allow organizations to handle completely different tax charges, help the brand new inclusive calculation technique, and adapt to revised bill layouts, all inside one automated platform.

ONESOURCE Dedication can even combine seamlessly with main enterprise useful resource planning methods (ERPs), guaranteeing your corporation stays audit-ready and totally compliant because the reform rolls out.

Forecasting the impression with the KPMG tax reform simulator

Profitable tax reform preparation goes past compliance and focuses on constructing a stable technique. The brand new tax system will redistribute the tax burden amongst enterprise items, geographies, and product traces.

To assist firms anticipate these modifications, KPMG has developed a highly effective tax reform simulator that:

• Integrates with Thomson Reuters know-how
• Makes use of the KPMG Oblique Tax Toolkit and ONESOURCE Dedication platform
• Fashions the impression of the brand new tax system on the transactional stage

The KPMG tax reform simulator makes use of your organization’s historic transactional information, extracted from oblique tax returns. It creates simulations tailor-made to your distinctive enterprise profile, no matter operational complexity or seasonality.

In consequence, you achieve:

• Actionable, scenario-based insights that show you how to plan pricing modifications
• Assist for negotiating with stakeholders
• Steering for shaping enterprise technique
• Interactive dashboards that assist visualize potential outcomes and help data-driven selections through the reform course of

Skilled help for profitable implementation

These options stand out as a result of they mix Thomson Reuters superior know-how with the implementation expertise of KPMG. As a number one participant within the ONESOURCE Licensed Implementer Program, KPMG helps organizations in deploying and integrating ONESOURCE tax applied sciences.

With this help, organizations can automate key tax processes, improve operational effectivity, and preserve full compliance all through Brazil’s tax reform.

Tax professionals can use these sources to anticipate regulatory modifications, streamline their operations, and make knowledgeable selections with confidence.

Take the following step

Don’t wait—act now to organize for Brazil’s tax reform:

• Discover ONESOURCE Dedication and see the way it can future-proof your tax compliance.
• See how Brazil’s tax reform will impression your corporation—discover the KPMG simulator and e book your free demo in the present day.

KPMG Brazil tax reform simulator

Full the shape to schedule your free demo in the present day.

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Disclaimer

Some or all the companies described herin will not be permissible for KPMG audit shoppers and their associates or associated entities. The KPMG title and emblem are registered emblems or emblems of KPMG Worldwide.