Brazil has published Complementary Law No. 224 of 26 December 2025, with implementing regulations in Decree No. 12.808 of 29 December 2025. Both the Law and the Decree implement a systemic reduction of tax benefits across major federal taxes (IRPJ, CSLL, PIS/Pasep, COFINS, IPI, and employer social security contributions). The incentive benefits are not revoked entirely but are diluted by using a specific calculation method as follows:
- Exemptions and Zero Rates: The benefit is reduced by im…