Brazil Announces Transitional Selective Tax Rates for 2027

Brazil's President has issued Provisional Measure No. 1,399, establishing the transitional rates and supplementary rules for the Imposto Seletivo (IS), or Selective Tax, for the 2027 calendar year. This measure, published on November 4, 2026, holds the force of law immediately but remains subject to review and potential conversion into definitive legislation by the Brazilian Congress. The Selective Tax is a new tax being introduced as part of Brazil's broader tax reform efforts. Companies operating in sectors subject to this tax, such as those dealing with specific goods and services, will need to be aware of these provisional rates to ensure compliance and accurately forecast their tax liabilities for 2027. The temporary nature of the measure means businesses should monitor its legislative progress closely.