Missed opportunities for innovation and intellectual property in Brazil’s tax reform
Suelen Carls & Rodrigo F. Silva
What the paper says
Brazil’s tax reform, established by Constitutional Amendment 132/2023 and regulated by Complementary Law 214/2025, modernizes its fiscal structure but fails to establish a cohesive strategy for the intangible economy. Through a normative-legal and policy analysis, this article examines how the omission of an IP box regime and the introduction of new consumption tax burdens (Imposto sobre Bens e Serviços/Contribuição sobre Bens e Serviços) on IP commercialization affect the capture of IP value, location of intangibles and innovation incentives. Drawing on the economic framework for intangible capital, our analysis finds that the reform creates a severe misalignment between innovation policy and taxation. Sectoral asymmetries, such as preserving constitutional immunity for the book industry while increasing taxes for high-growth sectors like electronic games, weaken IP incentives and Brazil’s international competitiveness, exacerbating existing policy challenges for the intangible economy.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.