By Edmo Colnaghi Neves (PhD), Murray Advogados, Brazil

Last week, on April 29, 2026, Federal Decree No. 12,955 was published, regulating the new taxes created by the tax reform: the CBS (Contribution on Goods and Services) and the IBS (Tax on Goods and Services), among other provisions. The decree consists of 620 (six hundred and twenty) articles, plus annexes.

It establishes the rules of incidence, defines taxable transactions, exceptions, specific regimes, and the overall functioning of the two taxes created by the Tax Reform. It unifies the taxation logic on goods and services and details how each transaction will be treated. The central point of the new regulation is the broad scope of taxable operations. The regulation makes it clear that any onerous transaction involving goods or services will be subject to IBS and CBS.

This includes purchase and sale, exchange, payment in kind; leasing; licensing, assignment, and concession; loans; leasing arrangements (including financial leasing); and provision of services. Non-onerous transactions may also be taxed when goods or services are supplied for the personal use of partners, managers, or employees.

On the other hand, there is no tax incidence on: services rendered by individuals as employees, managers, or board members; transfer of goods between establishments of the same taxpayer; transfer of equity interests; mergers, spin-offs, incorporations, capital contributions, and capital returns; and financial income and securities transactions (except under the specific financial regime).

The tax is levied “upon supply or upon payment,” whichever occurs first. There are also specific and differentiated regimes. The Ministry of Finance has published technical summaries with tailored rules for sectors such as financial services; health plans; fuels; bars, restaurants, hospitality, and tourism; public transportation; real estate transactions; and imports. These regimes adjust the calculation method, tax base, and credits according to the particularities of each sector. Complementary Law (LC) No. 214/25, which consolidates IBS, CBS, and the Selective Tax, was published last year and serves as the basis for the regulation.

May 2026.