04/02/2026
Brazilian Law No. 225/2026 introduced the Taxpayer Defense Code, with the purpose of regulating the interaction between tax authorities and taxpayers in a more balanced manner. The text sets forth general standards of conduct for the tax administration, grounded in transparency and the duty to provide information.
Among the main measures, it highlights the prohibition of anticipated foreclosure of judicial guarantees prior to the final conclusion of ongoing legal claims, as well as the mandatory assumption of taxpayer’s good faith, requiring technical justification for application of any restrictive measures.
As a means of encouraging tax compliance, the new legislation created the Cooperative Tax Compliance Program (CONFIA) and the Tax Compliance Incentive Program (SINTONIA).
These initiatives were designed to change the manner tax authorities interact with taxpayers, replacing a purely punitive enforcement approach with a model that prioritizes compliance, cooperation, and the prevention of irregularities.
CONFIA establishes a cooperation model based on the taxpayer’s voluntary participation, allowing organizations with consolidated tax governance systems to access benefits such as the voluntary disclosure of tax liabilities, with exemption of late-payment and punitive fines, as well as the possibility of self-regularization of outstanding tax debts.
SINTONIA, on the other hand, is a program aimed at stimulating compliance with tax and customs obligations by granting benefits to taxpayers in accordance with their registration and tax compliance status. This classification also considers the regular fulfillment of ancillary obligations and the accuracy of the information provided by taxpayers within their declarations and accounting records.
In this regard, just as it addresses the criteria for identifying good taxpayers, the law also sets forth the criteria for identification and classification of persistent tax debtors, namely the taxable person whose tax behavior is characterized by substantial, repeated, and unjustified nonpayment of taxes.
The law established a specific administrative proceeding to verify the persistent debtor’ status, ensuring the rights of defense, including the granting of a period for the payment of outstanding tax liabilities as well as for the submission of a defense, with suspensive effect.
The law also introduced on this matter the exclusion criteria applicable to the persistent tax debtor, who then becomes subject to severe restrictions, such as the prohibition on benefiting from tax incentives, the inability to participate in public procurement procedures, and the invalidation of registration records.
From a criminal law perspective, the statute changes the treatment afforded to such debtors by prohibiting the granting of benefits related to the extinguishment of criminal liability through payment, which are commonly applied to occasional debtors.
Finally, the statute provides that Brazilian states, Federal District and the municipalities must adapt their own local legislation to the guidelines set forth in the new law within a one-year period.
Learn more at: https://www.planalto.gov.br/ccivil_03/leis/lcp/Lcp225.htm
