“The reform was very profound, it changed the Constitution and brought new complementary legislation, published on January 16th, and came to change the disorganized way in which we deal with taxes in Brazil”, this is the analysis of Einar Tribuci, professor at Canal Solar and founding partner of Tribuci Lawyers.
“However, the long transition period, until 2032, could be a challenge, as we will have to live with two tax systems simultaneously”, adds the lawyer.
During episode #120 of the fourth season of the Papo Solar podcast, broadcast on Tuesday (18), Einar Tribuci and Bernardo Marangon, professor at Canal Solar and director of Prime Energy were present to discuss the impacts of tax reform.
The reform changed the country's taxation structure, replacing taxes such as ICMS (Tax on Circulation of Goods and Services), ISS (Tax on Services of Any Nature), PIS (Social Integration Program) and COFINS (Contribution for the Financing of Social Security).
Two new taxes will come into effect: CBS (Contribution on Goods and Services) and IBS (Tax on Goods and Services), with the aim of simplifying collection and standardizing taxation in all Brazilian states.
Impacts on the energy consumer
“In São Paulo, for example, ICMS is 18% and PIS and COFINS vary month to month, but we will consider it at around 5%, that is, a total of 23%. For this consumer, we will have CBS and IBS at around 28,70%, an increase of 5,7% in consumption tax,” explained Tribuci.
The full 28,70% change in energy bills will be seen from 2026, with PIS and COFINS taxes remaining reduced. For Tribuci, the biggest financial impact is on the end consumer. “That’s where the entire tax burden ends up,” he pointed out.
Impacts on the solar energy sector
The lawyer highlighted that the universe of solar energy is large. According to him, it involves, for example, DG (distributed generation), the sale of residential kits, and transactions in the Free Energy Market.
During the episode, it was commented that the tax reform will impact everything from the generation to the consumption of electricity. “But the attractiveness of an energy project remains valid”, stated Bruno Kikumoto, CEO of Canal Solar.
According to the analysis of Bernardo Marangon , there will be an accommodation of the market. “In the electricity sector, the tax aspect is very important and this change will create a new dynamic. Those who are attentive, knowledgeable and understand the details will create new products”, he highlighted.
“This topic is so important and is not being discussed much in our segment. Now that it has been defined, all companies need to pay close attention to this important topic,” concluded Marangon.
Watch the full episode
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An answer
Tax reform may impact distributed generation by changing incentives and taxation on solar energy. It is essential to ensure a favorable environment for investments, while maintaining predictability and legal certainty in the sector.