Brazil: Implemented Provisional Measure for minimum effective taxation (Provisional Measure No. 1,262/2024)

On 1 January 2025, Provisional Measure No. 1,262, which introduced an additional Social Contribution on Net Profit (CSLL), comes into force. This measure establishes a minimum effective tax rate of 15% for multinational enterprises with consolidated annual revenues of EUR 750 million or more. It encompasses detailed regulations for the calculation, reporting, and exemptions of this tax, as well as penalties for non-compliance or late reporting. Finally, the provisional measure includes provisions for the conversion of tax incentives starting in 2026 and updates Brazil's tax qualification standards.