Split Payment in Tax Reform: financial and strategic impacts for Brazilian companies

Brazil’s Tax Reform has introduced one of the most significant transformations in the business environment in recent decades.

With Constitutional Amendment No. 132/2023 and Complementary Law No. 214/2025, companies of all sizes are now facing a new scenario of tax, operational and financial adaptation.

Among the main changes, split payment stands out as one of the most relevant and challenging mechanisms for the productive sector.

Although the model has been presented as a solution to improve tax collection efficiency, reduce tax evasion and simplify tax payments, its implementation raises important concerns regarding cash flow, working capital, corporate liquidity and technological structure.

For business owners and executives, this discussion goes far beyond taxation. Split payment directly affects financial management.

Split payment consists of a tax collection model in which the tax portion of a commercial transaction is separated at the moment of financial settlement.

In practice, this means that when a company makes a sale, it will no longer receive the full gross amount of the transaction.

The portion related to IBS and CBS will be automatically transferred to tax authorities, while the supplier receives only the net amount.

This represents a structural shift from the current system.

With split payment, companies will operate with lower available liquidity, which may significantly affect sectors with low margins and strong dependence on working capital.

Beyond financial effects, implementation also creates relevant operational and technological challenges.

The new system requires integration among companies, financial institutions, payment systems, tax authorities and the IBS Management Committee.

This demands adjustments in ERP systems, payment platforms, tax management software and accounting routines.

Although tax reform promises simplification, the transition period between 2026 and 2033 will inevitably generate interpretative uncertainty and regulatory challenges.

Companies will need to operate under both old and new systems simultaneously.

This environment may increase compliance risks, operational errors and administrative costs.

Split payment represents one of the most significant changes brought by Brazil’s Tax Reform for the corporate environment.

Although the model may improve tax collection efficiency and strengthen tax control, its effects on cash flow, liquidity and business operations require immediate attention.

For business leaders and executives, the current moment should be viewed as an opportunity for strategic preparation.

In a transforming regulatory environment, preventive legal advisory combined with financial and tax planning will play an increasingly relevant role in protecting business stability.