Brazil Lower House Approves Bill to Temporarily Reduce Tax Rates for Chemical, Petrochemical Industries

The Brazilian Chamber of Deputies Feb. 10 approved Bill No. PLP 14/2026, to temporarily reduce tax rates for chemical and petrochemical industries participating in the special tax regime for the chemical industry (REIQ), until their migration to a new regime effective in 2027. The bill includes measures to: 1) apply reduced social integration contribution (PIS/PASEP) and social security contribution (COFINS) rates, of 1.52 percent and 0.62 percent, for specified chemical inputs; 2) apply rates of 7 percent for taxable events from January 2025 to February 2026, and 2.83 percent for taxable events from March to December 2026; 3) expand the ...