During an extraordinary session, Brazil’s Federal Court of Accounts (Tribunal de Contas da União – TCU) reviewed the calculations related to the determination of the reference rate for the Contribution on Goods and Services (Contribuição sobre Bens e Serviços – CBS) for 2027. As a result of this analysis, the TCU suggested that the CBS reference rate be set at 11.3%.
The proposal is expected to be submitted to the Federal Senate within one week. Senators will then have until December 15 to review the proposal and deliberate on the determination of the applicable rate.
It is therefore important to emphasize that the 11.3% rate is not yet the official CBS rate for 2027. At this stage, it represents the reference rate suggested by the TCU as part of the rate-setting process. Nevertheless, the final percentage is not expected to deviate significantly from the proposed figure.
From a tax perspective, a CBS rate at this level further reinforces the importance of effective input tax credit management. Under a non-cumulative tax system, the proper identification, recognition and utilization of available tax credits play an important role in determining the effective tax burden ultimately borne by businesses.
In this context, preparing for 2027 should go beyond simply applying the new tax rate. Businesses should also pay close attention to the processes, systems and tax data used to identify and control eligible credits, as the proper utilization of those amounts may directly affect the effective tax cost of their operations.
