Brazil Amends the National Tax Code to Improve Tax Collection and Limit Penalties

Brazil has published Complementary Law No. 236 of 4 September 2026, which amends the National Tax Code (Law No. 5.172 of 1966) to improve tax collection and limit penalties. Key points are summarized as follows:

Proportional Penalty Caps

It is required that penalties assessed for non-compliance with primary and reporting tax obligations must adhere to the principle of reasonableness, with caps based on the severity of the infraction. For penalties based on the tax liability amount, the ma…