Brazil Issues a Draft Law to Amend its Global Minimum Tax Act for June 2024 OECD Administrative Guidance

On August 29, 2025, Brazil issued proposed amendments to Normative Instruction No. 2,228 to take account of the June 2024 OECD Administrative Guidance and other sundry amendments.

The general text that accompanies the issue of the amended Normative Instruction provides that no amendments were needed for the January 2025 OECD Administrative Guidance

The proposed amendments in the draft law will generally apply for tax years beginning after January, 2025. However, a number of the amendments are to apply from January 1, 2026 with an option to apply them from January 1, 2025.

Proposed Amendments in the 2025 Draft Law

Fourth Set of OECD Administrative Guidance (Article)RuleImplementation in BrazilEffective From
1.2.1Aggregate DTL Category basis
August 2025 Draft Amendments – Articles 52A-52G
January 1, 2025
1.2.1Exclusion of certain types of GL accounts and separate tracking
August 2025 Draft Amendments – Articles 52A-52G
January 1, 2025
1.2.1Exclusion of GL accounts that generate standalone DTAs
August 2025 Draft Amendments – Articles 52A-52G
January 1, 2025
1.2.1Exclusion of swinging accounts and separate tracking
August 2025 Draft Amendments – Articles 52A-52G
January 1, 2025
1.2.2FIFO/LIFO Basis
August 2025 Draft Amendments – Articles 52A-52G
January 1, 2025
1.2.3Aggregation of Short-term DTLs
August 2025 Draft Amendments – Articles 52A-52G
January 1, 2025
1.2.2Reversal of DTLs that accrued before the Transition Year
August 2025 Draft Amendments – Articles 52A-52G
January 1, 2025
1.2.25 year unclaimed accrual election
August 2025 Draft Amendments – Article 53AJanuary 1, 2025
2.1.2Recalculated deferred tax where GloBE carrying value differs from accounting carrying value
August 2025 Draft Amendments – Article 50AJanuary 1, 2026 but subject to an option to apply from January 1, 2025
2.1.2GloBE and accounting carrying values and the Transition Rules
August 2025 Draft Amendments – Article 78January 1, 2026 but subject to an option to apply from January 1, 2025
2.1.2Exclusion of GloBE carrying value from SBIE
August 2025 Draft Amendments – Article 78January 1, 2026 but subject to an option to apply from January 1, 2025
3.1.3General rules for allocating cross-border, current taxes under a cross-crediting corporate tax system: 4 Steps
August 2025 Draft Amendments – Articles 48A-48FJanuary 1, 2026 but subject to an option to apply from January 1, 2025
3.1.3Specific rules for foreign PEs/CFCs, Hybrids/rev hybrids with domestic source income
August 2025 Draft Amendments – Articles 48A-48FJanuary 1, 2026 but subject to an option to apply from January 1, 2025
3.1.3Cross-crediting between Permanent Establishments and distributions from foreign subsidiaries
August 2025 Draft Amendments – Articles 48A-48FJanuary 1, 2026 but subject to an option to apply from January 1, 2025
4.1Extension of the Substitute Loss Carry-forward DTA to PEs, hybrids and rev hybrids
August 2025 Draft Amendments – Article 49January 1, 2025
4.2Allocation of deferred tax expenses and benefits from a Parent Entity to a CFC, PE Hybrid or Rev Hybrid: 5 step process
August 2025 Draft Amendments – Articles 47(7)/49January 1, 2026 but subject to an option to apply from January 1, 2025
5.2.2Determining GloBE status when a Flow-through Entity is held directly by another Flow-through Entity
August 2025 Draft Amendments – Articles 29A-29EJanuary 1, 2026 but subject to an option to apply from January 1, 2025
5.3.2Non-group owners: Partially owned Flow-through Entities
August 2025 Draft Amendments – Articles 29A-29EJanuary 1, 2026 but subject to an option to apply from January 1, 2025
5.3.5Non-group owners: Indirect minority ownership
August 2025 Draft Amendments – Articles 29A-29EJanuary 1, 2026 but subject to an option to apply from January 1, 2025
5.4.2Taxes allocated to a flow-through entity
August 2025 Draft Amendments – Articles 29A-29EJanuary 1, 2026 but subject to an option to apply from January 1, 2025
5.5.2Hybrid entities – Taxes pushed down include indirect owners
August 2025 Draft Amendments – Articles 29A-29EJanuary 1, 2026 but subject to an option to apply from January 1, 2025
5.5.4Hybrid entities – Entities located in jurisdictions without a Corporate Income Tax system
August 2025 Draft Amendments – Article 31AJanuary 1, 2026 but subject to an option to apply from January 1, 2025
5.6.2Extension of taxes pushed down to include Reverse Hybrids
August 2025 Draft Amendments – Article 47January 1, 2026 but subject to an option to apply from January 1, 2025
6.1.4Option to not impose top-up tax liabilities on SPVs used in securitization transactions
August 2025 Draft Amendments – Article 89AJanuary 1, 2026 but subject to an option to apply from January 1, 2025
6.1.4New definition: Securitization Entity
August 2025 Draft Amendments – Article 89BJanuary 1, 2026 but subject to an option to apply from January 1, 2025
6.1.4New definition: Securitization Arrangement
August 2025 Draft Amendments – Article 89BJanuary 1, 2026 but subject to an option to apply from January 1, 2025