Tax Reform
The effect of CBS and IBS on pricing, margins and contracts.
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Replacing PIS, Cofins, ICMS and ISS with CBS and IBS changes pricing, margins, credits and contracts.
CBS applies at its full rate from 2027. ICMS and ISS are phased down from 2029 to 2032 and abolished in 2033. Each stage of the transition calls for decisions on pricing, contracts and structure.
What we do
- Impact diagnosis by operation and by product or service line
- Review of pricing and long-term contracts
- Mapping credits across the supplier chain
- Regime analysis for Simples Nacional companies
- Monitoring the regulations throughout the transition
The transition
Each stage calls for decisions on pricing, contracts and structure.
2026
Test year
CBS and IBS appear on tax invoices at test rates.
2027
Full CBS
CBS replaces PIS and Cofins.
2029
Gradual phase-down
From 2029 to 2032, ICMS and ISS decrease as IBS increases.
2033
Full model
ICMS and ISS cease to exist.
Practice
Areas of a single tax practice.