The Brazilian Federal Revenue Service has opened a public consultation to discuss proposed amendments to the Normative Instruction No. 2,228/2024, which regulates the calculation and payment of the Brazilian QDMTT: the Adicional de CSLL.
The proposal aims to update the regulations to incorporate the latest OECD guidelines under the GloBE Rules (Pillar 2), ensuring that the Adicional de CSLL remains classified as a Qualified Domestic Minimum Top-up Tax (QDMTT).
The main changes involve the incorporation of guidelines published in January 2026 regarding the Side-By-Side Package, notably the GloBE Simplifying Rule for Substance-Based Tax Incentives (RSGIF), as well as conceptual and operational adjustments to provide greater clarity in the application of the rules.
As a basis for contributions, a file containing the proposed text to be implemented has been made available, covering the following points:
• General provisions;
• Qualified Tax Incentive, with general definitions;
• Tax incentives based on expenditure and production;
• Expenditure incurred and quantities produced;
• Qualified Refundable Tax Credit;
• Qualified Tax Incentive used in the Tax Year; and
• Substance Threshold.
Comments must be submitted by 3 May via email to the address provided by the RFB, indicating whether you agree or suggesting amendments, as well as any additional points that require regulation.
Moreover, it should be noted that Brazil recently applied to the OECD to be a Qualified Side-by-Side Regime alongside with the USA. Upon the OECD acceptance, the Qualified Side-by-Side status would not change the mechanics of Adicional de CSLL, but it could secure groups subject to the Adicional de CSLL exemption from the other two “backstop” taxes within the Pillar 2 system called the Income Inclusion Rule (IIR) and the Undertaxed Profits Rule (UTPR).
Our team is continuing to monitor this matter and is available to provide further clarification.
