The adoption of IFRS-based rules for tax purposes is compulsory
for all taxpayers from 2015 on.
In 2007, the federal government decreed Law n. 11,638, which
allowed for the convergence of Brazilian accounting standards with
International Financial Reporting Standards (IFRS). Convergence
with IFRS was intended to increase the comparability and
transparency of financial statements and to improve the standing of
Brazilian companies in the international financial and capital
markets.
Continuing with the IFRS harmonization, in 2013 Provisional
Measure (MP) n. 627/13 was enacted by the Brazilian government,
revoking Law n. 11.941/09 and its transitory tax regime (RTT)
adjustment method, and introducing new tax rules aligned to IFRS,
but with some independent tax rules in specific topics.
