Executive summary

On 18 September 2026, the Brazilian Federal Revenue Service (RFB) published Normative Instruction (NI) No. 2,342/2026, amending NI No. 2,228/2024, which regulates the Additional Social Contribution on Net Profit (Additional CSLL) in connection with Brazil's implementation of the Organisation for Economic Co-operation and Development (OECD) Pillar Two Global Anti-Base Erosion (GloBE) rules. (For background on the 2024 NI, see EY Global Tax Alert, Brazilian Government publishes Provisional Measure introducing OECD Pillar Two rules, dated 4 October 2024.)

The new NI incorporates into the Brazilian rules two significant measures from the Side-by-Side Package agreed by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on 5 January 2026. These measures: (1) extend the Transitional Country-by-Country Reporting (CbCR) Safe Harbor to fiscal years beginning on or before 31 December 2027; and (2) introduce the Substance-Based Tax Incentives (SBTI) Safe Harbor, referred to in the Brazilian regulations as the GloBE Simplification Rule for Substance-Based Tax Incentives (RSGIF).

Key changes introduced by NI No. 2,342/2026

Extension of the Transitional CbCR Safe Harbor to 2027

The measures now form part of Brazil's Additional CSLL regime, which is designed to produce outcomes consistent with a Qualified Domestic Minimum Top-up Tax (QDMTT).

SBTI Safe Harbor

NI No. 2,342/2026 incorporates into the Brazilian regime the extension of the Transitional CbCR Safe Harbor included in the OECD Side-by-Side Package. The safe harbor will remain available for fiscal years beginning on or before 31 December 2027, provided they do not end after 30 June 2029. In addition, the 17% transition rate applicable to fiscal years beginning in 2026 will continue to apply to fiscal years beginning in 2027.

The measure preserves for an additional year the ability to apply the Transitional CbCR Safe Harbor's simplified tests, reducing the need to perform full GloBE calculations for jurisdictions that meet the applicable requirements.

NI No. 2,342/2026 also introduces the RSGIF, corresponding to the OECD SBTI Safe Harbor. The rule allows certain Qualified Tax Incentives to be treated as an addition to Adjusted Covered Taxes, thereby reducing the effect of those incentives on the jurisdictional GloBE effective tax rate.

The safe harbor applies to qualifying expenditure-based or production-based tax incentives that satisfy the regulatory requirements and is subject to a Substance Cap calculated by reference to payroll costs and tangible assets in the jurisdiction. The election may be made for fiscal years beginning on or after 1 January 2026.

Key takeaways

Important takeaways from the new NI include:

• The Transitional CbCR Safe Harbor simplifications will continue to be available during 2027.
• The changes could reduce Pillar Two outcomes for certain tax incentives connected with substantive economic activities.
• Affected entities will need to review existing tax incentives and assess whether they qualify for the RSGIF.
• The Substance Cap calculation is now included in the GloBE/QDMTT compliance process.

Implications and next steps

Extending the Transitional CbCR Safe Harbor through 2027 and introducing the SBTI Safe Harbor expand the simplifications available to multinational enterprise (MNE) groups and further align Brazil's Additional CSLL regime with the latest guidance issued by the OECD/G20 Inclusive Framework on BEPS.

MNE groups with a presence in Brazil that are within scope of Pillar Two should, depending on their particular circumstances, consider:

• Reassessing the group's 2027 Transitional CbCR Safe Harbor position and related data requirements
• Inventorying Brazilian tax incentives and determining whether they meet the requirements for treatment as Qualified Tax Incentives under the RSGIF
• Modeling the effect of the Substance Cap and the RSGIF election on the Brazilian jurisdictional effective tax rate and Additional CSLL exposure
• Updating GloBE/QDMTT compliance processes, controls and documentation to capture the information required to support the applicable safe-harbor positions