Brazil’s 2025 tax reform will challenge law firms to shift from preparation to leadership, combining technology, talent, and strategy to guide their clients through a complex fiscal transformation
Key findings:
-
-
-
Law firms are preparing, but many lack a full strategy — While most legal professionals in Brazil have engaged in technical reading, nearly half of firms still have no formal plan for the 2026 tax reform changes.
-
Technology readiness is high, but talent gaps persist — Brazilian law firms are investing in digital tools, yet more than half of legal professionals admit their colleagues are not prepared to manage the regulatory changes due to insufficient training.
-
Client risks are rising, but awareness is uneven — Increased tax burdens and legislative complexity are major concerns for clients and their legal counsel, yet many clients remain underprepared.
-
-
Brazil is entering a new chapter in its fiscal history. With a sweeping tax reform regime set to begin in 2026, the country is preparing to simplify its complex tax system by introducing a dual value-added tax (VAT) model. This reform replaces multiple existing taxes with a more streamlined structure, aiming to improve transparency, reduce bureaucracy, and create a more predictable environment for businesses and citizens alike.
Jump to ↓
Brazil Tax Reform for Law Firm Professionals 2025
For law firms, this reform represents both a challenge and an opportunity. Many legal professionals and their firms are being called upon to act as guides, helping clients navigate a new and unfamiliar legal landscape. Many professionals have already begun preparing by studying the new legislation and participating in training sessions. However, their early efforts alone won’t be enough.
However, the real test will come in how firms translate their professionals’ knowledge into action by building internal capabilities, advising clients effectively, and adapting firm strategies to meet the demands of a changing system.
The pressure is already being felt. Legal professionals are seeing shifts in their daily work, with more questions, more complexity, and more demand for guidance from their clients. As Brazil’s tax reform progresses, this demand is expected to grow, placing even greater importance on preparation and foresight. Law firms that wait too long to act may find themselves overwhelmed, while those that invest early in the right tools and talent will be in a better position to lead.
Not surprisingly, technology is playing a key role in this transition. Legal professionals are turning to digital platforms that help simulate tax scenarios, interpret new rules, and provide real-time insights. These tools are becoming essential for firms that want to stay ahead of the curve.
You can download a full copy of the Thomson Reuters Institute’s “Brazil Tax Reform for Law Firm Professionals 2025” in Portuguese here
However, technology alone isn’t enough. The human element — skilled professionals who understand both the law and the needs of their clients — remains a critical piece of this solution. Without the right talent in place, even the most advanced systems can fall short.
Clients, too, are facing uncertainty. The new tax structure introduces unfamiliar rules and potential risks, from increased tax burdens to challenges in interpreting the law. Many already are looking to their legal advisors for clarity and direction. This makes it even more important for law firms and their professionals to be proactive — not just reacting to questions, but anticipating needs, educating clients, and offering strategic guidance.
The road ahead will not be easy. The reform is complex, and its full impact will unfold over several years; but it also offers a rare opportunity to modernize Brazil’s tax system and strengthen the legal infrastructure that supports it.
Those law firms that embrace this moment — by investing in talent, adopting smart technologies, and engaging clients with intention — will not only survive the transition but emerge stronger on the other side.
You can download
a full copy of the Thomson Reuters Institute’s “Brazil Tax Reform for Law Firm Professionals 2025” by filling out the form below:
