The Brazilian government has implemented a series of initiatives aimed at reducing and simplifying taxes, in anticipation of the broader tax reform currently underway. A key milestone in this strategy was the launch of the Exporta Mais Brasil program in July of this year. The initiative aims to broaden the country’s export base and provide immediate tax relief to strategic sectors while the new tax system is still being developed. Other measures have reinforced this trend toward simplification.  These include the expansion of the Drawback regime, updates to the Special Customs Regime for Industrial Warehouses under Computerized Control (RECOF) and Reintegra, as well as the new BR do Mar decree, which modernizes taxation for coastal shipping activities.

The Drawback regime, in place since the 1970s, has seen a significant innovation: the extension of benefits to logistics services related to exports, such as storage, customs clearance, and transportation.  This corrects a longstanding distortion that forced companies to limit deliveries to the port (FOB – Free on Board), making integrated operations more costly. Reintegra has been enhanced to benefit small and medium-sized companies, allowing them to recover tax credits accumulated through export activities. Meanwhile, recent changes to RECOF have extended tax incentives to services connected to industrial activity, broadening the regime’s scope and facilitating the participation of companies in a production model focused on foreign markets. Though each measure is distinct, they work in harmony with Exporta Mais Brasil, fostering a more competitive and efficient environment for Brazilian exporters.

These special regimes have long been necessary in Brazil, precisely because the existing tax system penalizes production and exports. The current goal is to bring Brazil closer to international standards, where taxes are levied only on added value.

“The new system will allow investors to clearly calculate the tax burden on their margin, as already happens in the United States, Europe, and Asia. In other words, what is currently granted as an isolated benefit will become the general rule in two or three years, if the reform is fully implemented,” explains Tiago Severini, partner in the Tax and Customs practice at Vieira Rezende.

In the maritime sector, the BR do Mar program reinforces this agenda.  Originally designed to promote coastal shipping, it now broadens the scope of the Special Navigation Taxation Regime (REB), previously limited to international transport. Under the new rules, foreign vessels can operate on domestic routes with a lower tax burden, provided they meet the applicable regulatory requirements—an incentive for the efficient use of Brazil’s coastline and a stimulus for investment in the sector. This results in immediate tax relief, particularly for companies already active in long-haul international transport that view cabotage as an opportunity for additional revenue streams.

All these measures send a clear message: Brazil is aligning itself with global principles of tax competitiveness. By establishing a more straightforward, predictable, and internationally aligned tax environment, the country enhances its appeal to investors without compromising protection for the domestic industry.