São Paulo State and City Coordinate Legal Strategy on IBS Tax Reform

The state and municipal attorneys general of São Paulo have formed a technical partnership to align legal interpretations of the new IBS tax, aiming to preempt litigation and harmonize theses between the two tax authorities. This coordination signals potential administrative friction in implementing Brazil's tax reform, as subnational entities seek to manage transition risks. The move is procedural and does not alter the reform's substance, but it may influence how IBS is applied in Brazil's largest economic hub.