Brazil proposes tax bill allowing postponement of consumption tax payments

Brazil's government announced plans to send a bill to Congress allowing taxpayers to postpone the final payment of the federal Goods and Services Tax (CBS) starting in January. The measure would permit taxpayers to defer payment until the month following the taxable transaction. If approved, the bill would allow payment based on estimated liabilities, removing the requirement that tax credits match actual payments.

The proposal aims to address concerns regarding the link between tax credits and payments, as well as the split payment mechanism. Critics of the current system have argued that split payments could drain companies’ working capital.