The Bill has now been forwarded to the Chamber of Deputies for additional review and discussion.
Brazil’s Senate has passed Complementary Bill (PLP) 108/2024 on 30 September 2025, which is the second legislative effort to structure the nation’s ongoing consumption tax reform.
The PLP 108/2024 has now been forwarded to the Chamber of Deputies for additional review and discussion.
The bill calls for establishing the Goods and Services Tax Management Committee (CG-IBS) and sets out regulations for administering and managing the new tax, which will be jointly overseen by states and municipalities. It also outlines procedures for resolving IBS-related disputes, the distribution of collected revenues among states and municipalities, and the treatment of ICMS credit balances during the transition. In addition, the proposal introduces updated rules for the Tax on Inheritance and Donations (ITCMD).
PLP 108/2024 establishes a unified framework for the ITCMD, defining how the tax is collected and setting maximum rates. The bill also introduces new provisions, including rules for the split payment system, guidelines for the cashback mechanism, and the use of accumulated ICMS (state VAT) credits through 2032.
PLP 108/2024 also includes several changes to Complementary Law 214/2025, exemptions from the new taxes, such as IBS, CBS, and excise tax (IS) for statutory membership contributions used to support eligible non-profit civil associations. The bill also reduces the tax penalty from 75% to 50% for cases where the taxpayer’s declaration accurately reports the relevant goods or services, quantities, and transaction values.
PLP 108/2024 introduces a presumed credit system that will be implemented starting in 2027.
Earlier, Brazil’s President, Luis Inácio Lula da Silva, signed Complementary Law No. 214/2025 into law on 16 January 2025, which introduces and defines new taxation frameworks in Brazil: Tax on Goods and Services (IBS), the Contribution on Goods and Services (CBS), and the Selective Tax (IS).
