[co-author: Anna Casagrande]
With the advance of the regulation of the Tax Reform object of Constitutional Amendment No. 132/2023, the Brazilian Internal Revenue Service (“IRS”) published the Ordinance No. 501/2024 on December 26, 2024, which established the Consumption Tax Reform Program (“RTC Program”).
The RTC Program’s goal is to encourage tax compliance through the development of actions aimed at simplifying the fulfillment of tax obligations (both principal and ancillary).
The RTC Program will consist of:
i. the RTC Program Committee: responsible for providing resources, making strategic decisions, overseeing progress, and conducting periodic evaluations;
ii. the Tax Reform Regulation Program: responsible for elaborating and proposing regulations and norms related to CBS (Contribution on Goods and Services) and Excise Tax; and
iii. the Tax Reform Operational Systems Implementation Program: responsible for developing solutions and coordinating the necessary activities for implementing operational systems for the reform.
Among the common responsibilities of the above programs, we highlight the following: (i) the dialogue and cooperation with the Management Committee of the Tax on Goods and Services - IBS and the tax authorities of the States, the Federal District, and the Municipalities, for the integration and sharing of information and systems; as well as (ii) the preparation, jointly and shared with the tax authorities of the States, the Federal District, and the municipalities, of the common regulatory standards of the CBS and the IBS.
The Sole Annex of Ordinance No. 501/2024 provides for designation of the Brazilian IRS´ individuals responsible for (i) Programs´ Management; (ii) Projects related to the Program for Implementation of Tax Reform Operating Systems; (iii) Project related to the Program for Regulation of Tax Reform; and (iv) Program Project Office.
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