International Tax Newsletter - May 2026

Mercosul-UE agreement comes into force

After 26 years of negotiations, on May 1, 2026, the Mercosur-EU Agreement came into effect on a provisional basis. With the treaty, the South American bloc, composed of Argentina, Brazil, Paraguay, and Uruguay, will eliminate tariffs on 91% of European goods within up to 15 years. The European Union will eliminate tariffs on 95% of goods sold by Mercosur within up to 12 years. The terms of the agreement were signed at the end of January in Asunción, Paraguay, between representatives of the two blocs.

Provisional Measure that changes the simplified taxation of international postal shipments.

On May 12, Provisional Measure No. 1.357 was published, which authorizes the Minister of Finance to reduce the import tax to zero for purchases up to US$ 50, and up to 30% for purchases up to US$ 3.000.

In practice, this provisional measure benefits purchases on international websites, and the main expected effects are the possible exemption up to US$50 and more flexibility in the rules, since the government can change the rates quickly without needing a new law.

Federal Revenue presents automated consultation of CBS debts

The Federal Revenue Service announced on May 20 a series of features of the Digital Platform of the tax reform, among which the automatic consultation of CBS debts directly through integration with systems via API stands out. In this way, software such as ERPs can access tax data without needing to manually enter the Revenue Service's website.

According to the Federal Revenue Service, upcoming versions will include new features such as issuance of Darf by the purchaser, consultation of CBS credits, and consultation of payments.

Clarification on profit remittance in EFD-Reinf and questions by the CFC

The Federal Revenue Service clarified that profits and dividends should only be reported when there is actual payment to the partner, that is, they should not be reported when there is only approval in the minutes. The Revenue made it clear that the obligation arises when there is economic or legal availability to the partner. This discussion arises in the face of two major changes: the end of the DIRF and the digitization of inspection.

Despite the clarification, the CFC raised a warning: There are significant doubts about the treatment of information from 2026 onward, because the current rule may change with the new taxation on profits, as from 2026 the credited profit can become a trigger for income tax, especially above certain legal limits. Currently, the logic is that it is only reported when the payment is made; however, with the clarification, the legislation may require also considering the time of the accounting credit, which creates the doubt of when the EFD-Reinf is declared.

Modernization of the Sped Portal

The Sped Portal began, on May 29, migration to a new digital platform. The portal is being modernized with a new layout, new organization of the pages, and a government visual standard (gov.br). This change is part of a government digitization and standardization movement, with a focus on improving the user experience and modernizing the Revenue portals.

It is important to emphasize that the change will be made gradually, so that it does not interrupt the services (ECD and ECF, for example).

NF-e receives Simplified DANFE Type 2 through Technical Notes

The Federal Revenue Service, together with the IBS Management Committee and Encat, published new Technical Notes (2026.002 and 2026.003) on May 25 that bring important changes for NF-e (Model 55) and NFC-e (Model 65), with the main highlight being the creation of the Simplified DANFE Type 2, developed to allow companies to use NF-e in retail operations, traditionally documented by NFC-e (Model 65).

Technical Note 2026.002 establishes systemic and validation rules for the adoption of the new model, and among its main changes is the possibility of including the print type tpImp = 6 (Simplified DANFE Type 2). Technical Note 2026.003 defines the layout and specifications of the document, detailing the visual structure and mandatory fields.

Federal Revenue expands transparency on tax benefits

The Federal Revenue Service published on May 29, in the Official Gazette, RFB Ordinance No. 688, changing the rules for proactive transparency of information related to tax incentives, waivers, benefits, or immunities for which the beneficiary is a legal entity, as set forth in art. 198 of the CTN (DIRBI).

According to the Revenue Service, the focus is on improving the management of tax benefits and increasing transparency, moving towards a more closely monitored taxation model, thus bringing more ancillary obligations and higher risk of tax assessment.