The Importance of Tax Management in Brazilian Agribusiness

Abstract

Brazilian agribusiness is one of the main drivers of the Brazilian economy, contributing significantly to the gross domestic product and exports. Despite this, the complex and fragmented tax environment poses difficulties for the sector’s operational efficiency and international competitiveness. With a high tax burden and a system marked by protracted litigation, companies face obstacles in meeting their tax obligations without compromising their results. Recent tax reforms seek to simplify the system, consolidating taxes and reducing bureaucracy. However, the implementation of these changes still generates uncertainty, especially regarding possible increases in the tax burden and the introduction of new taxes, such as the IPVA on agricultural machinery. In addition, the lack of complementary regulations makes it difficult for companies to strategically plan. In this context, efficient tax management becomes essential to optimize costs, improve cash flow and ensure legal compliance. This article aims to examine the main strategies adopted by the sector, the benefits of a well-structured tax administration and the tax challenges posed by the current regulatory scenario.