A word from the President - Abel - Abel

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Tax reform: leasing is strengthened

Osmar Roncolato Pinho*

The tax reform approval, with the promulgation of the Complementary Law no. 214/2025, represents a milestone for Brazil and especially for the leasing sector. After intense debates, we reached advances which guarantee greater competitiveness, legal certainty and tax simplification for leasing operations.

From the beginning, the Brazilian Association of Leasing Companies (ABEL) worked arduously so that the principles of leasing, recognized internationally and regulated in Brazil by Law no. 6099/1974 and by the Central Bank’s regulations, were included in the new tax model. This model establishes the Value Added Tax (VAT), clearly differentiating the leasing of “rental” and “financial operations.”

One of the main advances is the substitution of the Tax on Services (ISS) and the Tax on Circulation of Goods and Services (ICMS) by the Tax on Goods and Services (IBS), eliminating disputes between states and municipalities that impacted the sector for decades. Besides that, the end of cumulative taxes such as Social Integration Program (PIS) and Contribution for the Financing of Social Security (COFINS), with the Contribution on Goods and Services (CBS), will bring more tax neutrality, reducing costs and guaranteeing greater legal certainty.

We were able to make leasing truly recognized as an “institution”, in both operational and financial leasing by way of the Constitutional Amendment no. 132, dated as of 2023. With clearer and more aligned rules to international best practices, leasing reinforces its strategic role in the economy and consolidates itself as an efficient solution for companies in asset management and resource optimization.

These achievements were only possible due to our associates’ efforts, who actively contributed to all stages of the process. We will continue to monitor the implementation of the new rules, reaffirming leasing as an essential instrument for Brazilian economic development.

*Osmar Roncolato Pinho is President of the Abel Brazilian Association of Leasing Companies