Tax Reform
Year-by-Year Timeline
8 years of transition. Each year brings changes to what you pay, how you pay, and where it makes sense to import. Here's exactly what happens when.
2026 — Now 2033 — Complete
20262027202820292030203120322033
Current
Next
Future
2026
Testing phase
We are hereCBS 0.9% (test)
IBS 0.1% (test)
PIS 2.1%
COFINS 9.65%
ICMS 17–22%
IPI Full rates
What changes:
- • CBS and IBS appear on the Nota Fiscal at test rates
- • Test rates are creditable against PIS/COFINS — net additional burden ~1%
- • All existing taxes (PIS, COFINS, IPI, ICMS) continue at full rates
- • Siscomex DI/DUIMP updated to include CBS/IBS fields
- • First CBS/IBS declarations filed (EFD-CBS starts March 2026)
For importers: Minimal impact. Update your systems to handle CBS/IBS fields. The test rates coexist with full current taxes — your landed cost increases by approximately 1%. Use this year to understand the new system before it matters.
2027
CBS goes live — PIS/COFINS/IPI eliminated
Starts January 2027CBS Full rate (~8.8%)
IBS 0.1% (test)
PIS Eliminated
COFINS Eliminated
ICMS 17–22%
IPI 0% (most products)
What changes:
- • PIS (2.1%) and COFINS (9.65%) on imports → eliminated
- • CBS at full rate replaces them (single ~8.8% rate)
- • IPI drops to 0% for most products (except IS-covered categories)
- • Selective Tax (IS) begins for alcohol, tobacco, vehicles, sugary drinks
- • IBS remains at 0.1% test rate
- • ICMS unchanged at full rates
For importers: This is the first year with real changes. PIS + COFINS (11.75% combined) → CBS (~8.8%) is a slight reduction. IPI elimination is huge for affected products. Net effect depends on your product: IPI-heavy goods see significant savings, others roughly neutral.
2028
CBS full + IBS still testing
CBS Full rate (~8.8%)
IBS 0.1% (test)
PIS Gone
COFINS Gone
ICMS 17–22%
IPI 0% (most)
What changes:
- • Stabilization year — CBS at full rate, IBS still testing
- • Regulatory refinements based on 2027 experience
- • ICMS audit focus intensifies (states preparing for transition)
- • CBS credit system fully operational
For importers: A calm year. Similar to 2027 but with more mature CBS processes. Use this window to model IBS full-rate scenarios — they start next year.
2029
IBS transition begins — ICMS starts declining
CBS Full rate
IBS ~10% (partial)
PIS Gone
COFINS Gone
ICMS Reduced by ~10%
IPI 0% (most)
What changes:
- • IBS rate increases from 0.1% to ~10% of its final rate
- • ICMS rates decrease proportionally (reduced by ~10%)
- • ICMS incentive programs (FUNDAP, TTD, etc.) begin phase-out
- • Destination-based taxation starts applying partially
- • State tax competition begins declining
For importers: First real impact on state taxes. If you import through ES, SC, or GO for ICMS incentives, the benefit starts shrinking. Begin evaluating port choice on logistics merit.
2030
IBS ramp-up — 20% of final rate
CBS Full rate
IBS ~20% of final
PIS Gone
COFINS Gone
ICMS Reduced by ~20%
IPI 0% (most)
What changes:
- • IBS increases to ~20% of final rate, ICMS decreases proportionally
- • ICMS incentive programs further reduced
- • Some states may attempt to create IBS-based alternatives
For importers: Continued transition. ICMS incentive savings shrink by ~20% from original levels. The gap between "incentive states" and "regular states" narrows.
2031
IBS reaches 40% — ICMS losing dominance
CBS Full rate
IBS ~40% of final
PIS Gone
COFINS Gone
ICMS Reduced by ~40%
IPI 0% (most)
What changes:
- • IBS reaches ~40% of final rate
- • ICMS reduced by ~40% from 2026 levels
- • Most ICMS incentive programs significantly diminished
- • Destination principle covers ~40% of state tax base
For importers: By now, the tax advantage of importing through incentive states is roughly halved. Supply chain decisions should be increasingly driven by port efficiency, warehouse costs, and logistics — not tax arbitrage.
2032
IBS dominant at 70% — ICMS fading
CBS Full rate
IBS ~70% of final
PIS Gone
COFINS Gone
ICMS Reduced by ~70%
IPI 0% (most)
What changes:
- • IBS at ~70% of final rate, ICMS nearly gone
- • ICMS incentive programs effectively expired for most importers
- • State-level tax competition essentially over
- • Final adjustments to IBS rate being calibrated
For importers: The old system is almost gone. Only residual ICMS remains. Your landed cost calculation should now be CBS + IBS + II + AFRMM. Simpler.
2033
Full transition complete
CBS Full rate (~8.8%)
IBS Full rate (~17.7%)
PIS Gone
COFINS Gone
ICMS Eliminated
IPI Eliminated
What changes:
- • ICMS fully eliminated — IBS at full rate
- • PIS and COFINS are history
- • IPI eliminated (IS covers sin-tax products)
- • Single dual-VAT: CBS (federal) + IBS (state/municipal)
- • Destination-based taxation fully in effect
- • Full credit chain — no cascading
For importers: The promised land. Two taxes instead of five. Non-cascading, fully creditable, destination-based. Your import tax calculation: II + CBS + IBS + IS (if applicable) + AFRMM. Where you import doesn't affect the state tax anymore.
Quick reference: when each tax disappears
| Tax | Last year at full rate | Replaced by | Fully gone |
|---|---|---|---|
| PIS (2.1%) | 2026 | CBS | January 2027 |
| COFINS (9.65%) | 2026 | CBS | January 2027 |
| IPI (0–300%) | 2026 | IS (Selective Tax) for sin products | January 2027 |
| ICMS (17–22%) | 2028 | IBS | 2033 (gradual 2029–2033) |
| ISS (2–5%) | 2028 | IBS | 2033 (gradual 2029–2033) |