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Brazil’s Tax Reform Requires Businesses to Review Their Contracts: Here’s Why

27/05/2025

Brazil’s tax reform is already reshaping commercial and contractual relationships. As the country restructures its tax system, many clauses that were previously appropriate may now become unbalanced — or even incompatible — with the new rules.

Why Review Contracts Now?

With changes to consumption-based taxes and ancillary obligations, business contracts — especially long‑term agreements — may need updates in clauses involving:

  • Pricing structures and cost‑pass‑through mechanisms
  • Allocation of tax liability between the parties
  • Rules for adjustments, indexation, and tax‑related compensation
  • Contractual risks tied to legislative changes

Beyond that, the reform may affect agreements with suppliers, service providers, and customers, leading to the need for renegotiations to preserve legal certainty and financial stability.

How Legal Counsel Can Help

This transitional moment requires both technical precision and strategic planning. DGN Advogados is prepared to support businesses by:

  • Reviewing and adapting contractual clauses to the new tax framework
  • Assisting in negotiations with commercial partners
  • Identifying legal risks and opportunities brought by the legislative changes

Stay Ahead of the Changes

Evaluating and adjusting your contracts before the full impact of the reform takes hold is one of the most effective ways to protect your business, maintain competitiveness, and ensure legal security.

Contact DGN Advogados to learn how we can assist your company in navigating this stage of tax and contractual adaptation in Brazil.

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