Brazil MOF Announces Complementary Law Project to Create New Consumption Taxation System

The Brazilian Ministry of Finance April 26 announced the complementary law project (PLP), which creates the new consumption taxation system. The PLP includes: 1) the establishment of the tax on goods and services (IBS), the contribution on goods and services (CBS), and the selective tax (IS); 2) estimated tax rates, including a rate of 8.8 percent for CBS and 17.7 percent for IBS, resulting in an estimated combined rate of 26.5 percent; 3) tax refunds for low-income families; 4) the calculation period, methods of collection, appropriation and use of credits, and the reimbursement of credit balances, for IBS and CBS; ...