• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 11/15/2013

Brazil - New tax accounting rules  

November 15: A provisional measure* published this week in Brazil is intended to establish new tax accounting rules.


Brazil’s accounting rules (referred to as “new BR-GAAP”) were aligned with IFRS in 2008.

Subsequently, in 2009, a transition tax regime was introduced with the purpose of regulating how taxpayers were to compute their taxes under the new accounting environment. In general, the transition rules provided—solely for tax purposes—that companies must “book” their revenues, costs, and expenses in accordance with the existing accounting rules prior to the conversion to IFRS (i.e., under “old BR-GAAP”).

New tax accounting rules

Provisional Measure (MP) 627/2013 repeals the transition tax regime method and establishes the new tax rules to align Brazil’s tax accounting rules with the current IFRS-based accounting environment.

The new rules will affect corporate income tax (IRPJ), social contribution tax on net profits (CSLL) and gross revenue taxes (PIS/ COFINS) concerning various items of income or deductions.

Most of the changes are effective January 2014, with some effective one year later in January 2015.

Read a November 2013 report prepared by the KPMG member firm in Brazil: Tax News: MP 627/2013

*In Brazil, a provisional measure (Medida Provisória) is an “act” issued by the president, with the authority of law until later approved by Congress. The provisional measure is effective as from its date of publication for 60 days, and may be extended for an additional 60-day period (for a total of 120 days).

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now