TLDR: A recent KPMG report highlights that 60% of Brazilian companies are actively exploring or have already adopted generative AI solutions for their tax reporting functions. This trend emerges as Brazil prepares for a complex, multi-year tax reform, positioning AI as a critical tool for navigating new compliance challenges and enhancing efficiency.
A recent KPMG report indicates that a significant 60% of Brazilian companies are either actively considering or have already begun implementing generative artificial intelligence (AI) for their tax reporting processes. This substantial interest underscores a growing recognition of AI’s transformative potential within the complex landscape of corporate taxation, particularly as Brazil embarks on its most sweeping tax reform in decades.
Generative AI is emerging as an essential tool for tax leaders, offering exciting opportunities to redefine business processes, significantly improve productivity and compliance, and enable tax professionals to focus on higher-value strategic work. However, this shift necessitates considerable retraining to adapt to new roles and the introduction of innovative tax workflow processes to ensure the delivery of high-quality, verifiable outcomes. The adoption of such advanced technologies is crucial for companies grappling with a challenging environment marked by geopolitical uncertainty, rapidly evolving and often fragmented regulations, and a persistent shortage of skilled tax talent.
Brazil’s impending tax reform, with a transition period slated from 2026 to 2032, introduces a dual value-added tax system (CBS at the federal level and IBS at the state and municipal levels). This fundamental shift will impact nearly every facet of business operations, from calculation methods and invoice layouts to reporting requirements. Companies anticipate increased workloads, higher training costs, and significant expenses for system adaptation. In this context, generative AI offers a pathway to streamline operations, automate routine tasks, and provide more accurate forecasting and compliance.
KPMG is actively supporting organizations through this transformation, offering tools like their tax reform simulator. This simulator integrates with existing technologies and uses historical transactional data to model the impact of the new tax system, providing actionable, scenario-based insights for strategic planning and decision-making. The firm also emphasizes the importance of AI assurance capabilities to monitor AI agent behavior, ensuring operations remain within established guardrails and mitigating risks related to security vulnerabilities, customer privacy, and the accuracy of AI outputs.
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The high percentage of Brazilian companies engaging with generative AI for tax reporting reflects a proactive approach to leveraging technology to not only meet new regulatory demands but also to gain a competitive advantage in an increasingly digital and complex global tax environment.
