Sintonia Program, E-BEF, Paternity Leave & Entry Strategies

Brazil is advancing its tax compliance agenda with the launch of the "Sintonia" Program, an initiative led by the Receita Federal do Brasil.

Established under Normative Instruction RFB No. 2,191/2024, the program became effective on January 1, 2025, with gradual implementation throughout 2025 and 2026. The objective of Sintonia is to encourage companies to adopt strong tax governance practices and maintain full compliance with their tax obligations. In return, compliant taxpayers may benefit from a differentiated treatment by the tax authorities.

The program introduces a classification system that evaluates companies based on criteria such as filing accuracy, timeliness of payments, and consistency of reported information.

The detailed scoring and each company's final classification will be disclosed on a quarterly basis. Companies achieving higher compliance ratings may access advantages such as simplified procedures, priority service, and potentially reduced scrutiny. Conversely, lower-rated entities may face increased monitoring and a higher likelihood of audits.

Brazil is strengthening its compliance framework with the introduction of the E-BEF (Electronic Ultimate Beneficial Owner Form), a new digital obligation led by the Receita Federal do Brasil.

Established by Normative Instruction RFB No. 2,290/2025, the E-BEF becomes applicable as from 2026, with a progressive implementation throughout the year. This measure represents a significant step toward greater corporate transparency and alignment with international standards such as those promoted by the OECD and FATF.

While similar information was previously provided in certain registrations, the new system introduces a structured, digital, and recurring reporting requirement. Businesses will need to map their ownership chains carefully, sometimes across multiple jurisdictions, to identify the final controlling individuals.

For international groups operating in Brazil, the E-BEF should be seen not only as a regulatory burden but also as an opportunity to strengthen governance and transparency practices. As enforcement approaches in 2026, companies should act early to assess their exposure and prepare for this new obligation.

Brazil has taken a significant step in labor and social policy with the enactment of Law No. 15,371/2026, published on April 1, 2026, expanding paternity leave with a gradual implementation from 2027 to 2029.

Currently, under existing rules, fathers are entitled to 5 days of paid leave following the birth or adoption of a child. The new law establishes a progressive increase in paternity leave duration, allowing companies to adapt while significantly expanding social protection.

When entering the Brazilian market, foreign companies typically face a key strategic decision: hire through an Employer of Record (EOR) or establish a local subsidiary.

Each model offers distinct advantages depending on the company's objectives, timeline, and risk appetite. In practice, many international groups start with an EOR and transition to a subsidiary once their operations reach a certain scale.

At BPC Partners, we help clients assess the most suitable entry strategy based on their business model, timeline, and compliance needs. Choosing the right structure from the outset can significantly impact speed to market, cost efficiency, and long-term success in Brazil.