Tax reform: main impacts on SMEs and how to prepare

by Andrea
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A tax reform promises to impact businesses of different segments and sizes, and it is no different with small and micro enterprises (SMEs).

With forecast of full implementation in 2033the change has already mobilized businesspeople who are keeping an eye on adaptations during the so-called “transition period”which includes the months of January to December 2026.

For most entrepreneurs, however, the topic is already imperative. According to data from Omie Small Business Surveyresearch on the management platform (ERP) in the Omie cloud, 65% two leadersamong CEOs, directors, partners, managers and entrepreneurs, believe that new rules will directly affect your business.

Among the most sensitive changes is the unification of five different taxes in two new taxes that will make up the Value Added Tax (VAT).

How tax reform affects SMEs

Although the new charges apply to individual microentrepreneurs (MEIs) and are limited to companies that are part of the Real Profit and Presumed Profit regimes, it is possible that the changes will force SMEs to adapt compulsorily, as they need to adapt to the general context of the market.

An example of these impacts is the increase in fiscal complexity, as the two regimes (old and current) will coexist simultaneously during the transition period.

“The coexistence between the two regimes tends to increase the complexity of fiscal management, especially impacting small companies, which generally have fewer resources to deal with structural changes”, says Felipe Beraldi, economist and manager of Indicators and Economic Studies at Omie.

In addition to unifying tax collection, it also serves as a warning to companies that currently rely on the credit system to calculate their tax exemptions.

In practice, the new system will no longer allow the accumulation of points, or cumulative “credits” at each stage of the chain.

Large companies began to be taxed on the difference between the value of sales and expenses.

Companies interested in accumulating tax credits in full must pay ICMS separately.

For entrepreneurs, this will require even more planning, says the expert.

“This will require a structured organization to manage this process appropriately, with the aim of making the best decision for the business”, he says.

“The ability to adapt will be essential to guarantee competitiveness and financial sustainability.”

Finally, in addition to the creation of VAT, some sectors will be exposed to the Selective Tax (IS), also known as , an extra taxation under federal jurisdiction that aims to discourage the consumption of products considered harmful to health and the environment.

Non-B2B impact

The specialist also addresses the impacts on SMEs that are part of the production chains of other companies, that is, that operate in B2B.

For these businesses, he explains, the impact will be felt indirectly thanks to the new credit system.

The general analysis is that many of them will be harmed and will have their contracts reviewed by their buyers, if they do not adapt to the new system, as they will not be able to offer credits at each stage of the chain, as is currently the case — and, thus, will no longer be advantageous suppliers for large companies.

According to Liêda Amaral, partner at BSSP Consulting, a tax consultancy focused on small and medium-sized companies, the dynamics can also impact the cash flow of small companies.

“Large companies often pressure their suppliers, including SMEs, to reduce costs and maintain some degree of compliance with all tax regulations. With the tax reform, if SMEs do not have good management of tax credits, they may end up absorbing more costs, reducing their profitability”, he says.

Anderson Trautman Cardoso, partner in the Tax area at Souto Correa Advogados, says the tax reform brings significant changes for companies of all sizes, including those opting for Simples Nacional.

According to him, , but the possibility of using credits will be the big difference of the new system.

“At this point, smaller businesses, opting for Simples Nacional, had their competitiveness affected, as they will not be able to generate full IBS and CBS credit, and will only be able to credit the amount collected under the optional regime”, he explains.

According to Cardoso, the new system allows these companies to adhere to the general consumption taxation regime.

“In other words, only from IBS and CBS, being able to benefit their customers with full credits, which ensures an alternative to maintain their competitiveness”.

Tips for SMEs to adapt

To be able to face the changes applied, even if gradually, before the new rules come into force, many entrepreneurs should take advantage of the year 2025 to implement subtle changes in the fiscal and tax management of their businesses.

Beraldi states that extra attention is needed to the , which starts gradually in 2026 and goes until 2033, in addition to the changes to the .

“It will be a long transition, which must begin as soon as possible, since the changes can affect, in addition to the tax burden, the competitiveness and even the financial sustainability of companies”, he states.

According to the economist, a lack of preparation can cause inadequate control of the business’s financial flow, which leads to risks of tax audits and investigations by the Federal Revenue Service.

Experts also list general tips for companies that are determined to take advantage of the year 2025 to prepare for the change and its respective impacts to come. See below:

Prepare in advance

The proposal for the new tax reform is . However, to take advantage of the business opportunities that the new rules can offer, advance preparation is necessary, which starts with paying attention to legislative discussions and also with voluntary and early adaptation, assesses Beraldi.

“Leaving it to the last minute can be a significant risk for competitiveness, cash flow and relationships with suppliers and customers,” says Beraldi, from Omie.

Rethink the price of products and services

The impacts of this may force many establishments to readjust prices for products and services. This adjustment, if done abruptly, could compromise relationships with customers and suppliers.

What is recommended, according to Beraldi, is to closely monitor the possible impacts of the reform and, thus, anticipate gradual adjustments so that long-term commercial relations are not affected.

Find out more about the new charges

Entrepreneurs’ lack of knowledge about the existence and function of some charges and taxes can cause management problems in many companies.

This is the case of ICMS, but also of the “Sin Tax”, which is specifically levied on companies that sell products considered harmful to health and the environment, such as cigarettes, alcoholic beverages, among others.

Consider the current tax regime

Changing the tax regime to Presumed Profit or Real Profit becomes an option for companies that wish to accumulate credit in full, which brings with it a structural challenge.

By choosing to leave Simples Nacional, which assumes a simpler taxation dynamic — as the name suggests — MSEs may face greater tax complexity and the requirement for even more rigorous control of finances.

For companies that decide to remain in Simples, but start collecting ICMS separately to accumulate credits, it is possible that there will be higher final taxation.

Seek professional support

The slow and gradual adaptation and the challenges surrounding its complexity make the association with specialized business partners one of the most promising paths during the transition period.

Amaral highlights the importance of entrepreneurs considering hiring specialized consultancies, in addition to investing in technology and continuous training for their team.

“Overcoming the challenges of financial and tax management requires planning, use of technology and a constant search for knowledge”, he says.

“Investing in knowledge, technology and specialized consultancy during the transition period can ensure a smoother and more advantageous adaptation.”

In addition to employee training, the adoption of technology could be a promising path over the next two years.

In the long term, the use of fiscal management and control tools and familiarity with the new reform standards will result in a significant reduction in errors and also greater agility in the management of small businesses.

Learn to deal with data

With legislative changes, small businesses will be forced to deal with an even greater volume of data, in addition to knowing the financial indicators that drive business.

To achieve this, Beraldi indicates that it is necessary to rely on management software (ERPs) that bring more autonomy and efficiency to entrepreneurs.

“The sooner these tools are adopted in operations, the more prepared and equipped entrepreneurs will be to make the best decisions in their tax planning”, he concludes.

(Text by Maria Clara Dias)

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