BRAZIL Law and Practice Contributed by: Ricardo Barretto Ferreira da Silva and Camila Sabino Del Sasso, Azevedo Sette Advogados
9. Looking Forward 9.1 Upcoming Legal Reforms Tax Reform
In response, Brazil is currently debating Bill No 2,338/2023, known as the “Legal Framework for Artificial Intelligence”, in Congress. The bill aims to regulate the use of AI tools in advertis - ing, particularly to curb deceptive practices. It is considered a legislative priority and is expected to be put to a vote soon. Fake News Combating the spread of fake news has also been the focus of several legislative initiatives. Significant developments are expected soon, such as the following. • Bill No 2,948/2024 – this seeks to increase penalties for the dissemination of fake news during election campaigns and in the six months preceding them. The bill is await - ing designation of a rapporteur in the Senate Committee on Communication and Digital Rights. • Bill No 2,051/2024 – this criminalises the creation and sharing of fake news on topics of significant public interest, such as health, education, environment, public security, and the national economy. The bill proposes imprisonment from six months to three years, in addition to fines, for knowingly spreading false information. • Bill No 2,630/2020 (“Fake News Bill”) – this remains under review in the House of Repre - sentatives.
Brazil is in the process of implementing a major tax reform and the changes are supposed to occur gradually, starting in 2026, with integral enforcement of the new system expected for 2033. The changes include: • simplification and unification of consumer taxes; • progressive taxation on inheritance and dona - tions, including a new tax on assets inherited abroad; • establishment of a cashback system to return part of the tax collected to specific taxpayers; • implementation of a progressive tax on vehi - cles, based on environmental impact; and • consolidation of the various existing taxes and contributions (indirect taxes), creating a more efficient and transparent system. To enable the start of the transition, over the course of 2024 and 2025, it will be necessary to approve the complementary laws that will regulate the IBS and CBS, the IBS Federative Council, the Regional Development Fund, and the reimbursement of accumulated ICMS credit balances, as well as structuring the new tax col - lection model. AI The use of AI has been steadily growing in Brazil, mirroring global trends. AI technologies, includ - ing machine learning and deep learning, have already been widely adopted across various economic sectors. This widespread integration has prompted discussions on how these tech - nologies should be governed, highlighting the need for a dedicated regulatory framework.
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