Uncharted waters: How firms are tackling the software side of Brazil’s tax reform

The tax reform in Brazil has created operational issues for companies in terms of adapting their accounting and tax systems to the new rules, while demand for tech specialists and consultants is on the rise.

“The reform, from a software standpoint, is not yet defined,” Roberto de Lazari, managing director at tax software firm All Tax, told journalists on Tuesday at the SAP Now event in São Paulo.

Among the main points that remain open for tax system adaptations are the definition of the unified tax rates, the way to report to the authorities, and the tax credit accounting procedures, among others.

These points will be defined in the reform’s specific regulations for a wide range of business sectors and is currently being discussed in congress.

Despite this, All Tax has been actively working with its clients in the first stages of adapting their tax software, according to Lazari. The executive said that consultations with technology companies that are experts on tax platforms are ramping up because of the reform.

"The current model will continue for 5-10 years and will coexist with a new model. It’s a challenge for companies and also for tax management software,” he said.

Founded in 2011, All Tax is a joint venture between Agile Solutions, specialized in the development of SAP solutions, tax planning consultancy Lex Consulting and SAP itself, which has been one of All Tax's investors since 2013.

All Tax's clients include companies such as national oil company Petrobras, meatpacking giant BRF, and Banco Sicredi, among others.

Lazari said that around 8% of Brazil's GDP is covered by All Tax solutions.