Phase-Out Calendar for the Old Taxes: PIS, Cofins, IPI, ICMS and ISS
Complete table with the phase-out deadlines for PIS, Cofins, IPI, ICMS and ISS under LC 214/2025. What to do with the remaining credits for each tax.
Executive Summary
LC 214/2025 establishes a progressive phase-out schedule for five old taxes: PIS, Cofins, IPI, ICMS and ISS. Each tax follows its own transition pace — some disappear within a few years, while others coexist for a long stretch alongside the new CBS and IBS. This guide lays out the detailed calendar and the actions the accountant needs to take for each tax being phased out.
Overview of the Phase-Out
PIS — Phase-Out Schedule
Detailed timeline
What changes for the company
The phase-out of PIS directly affects companies that use PIS credits as a tax-planning tool. Main changes:
- PIS credits on inputs are gradually being replaced by CBS credits.
- Companies under Lucro Real (actual-profit regime) that held significant PIS balances need to review their credit strategy.
What to do with remaining PIS credits
The treatment of these credits depends on the transition rules and on the documentation backing each balance. In practice, we recommend:
- Inventorying every existing PIS credit through the end of 2027.
- Consulting the Receita Federal about options to use the credits before the phase-out.
- Considering the impact on the IRPJ and CSLL assessment.
Cofins — Phase-Out Schedule
Detailed timeline
What changes for the company
Cofins is levied on the gross revenue of legal entities and was one of the main contributions replaced by CBS. The phase-out:
- Eliminates the distinction between cumulative and non-cumulative Cofins.
- Replaces it with the CBS levy on the value of the good or service.
Difference between PIS and Cofins in the phase-out
While PIS is phased out faster, Cofins follows a similar timeline but with specific transition rules for sectors that used special credits (pharmaceutical industry, information technology).
IPI — Phase-Out Schedule
Detailed timeline
Most affected sectors
The phase-out of IPI directly affects:
- The automotive industry (vehicles, auto parts).
- The beverage and tobacco industry.
- The pharmaceutical sector (manufactured medicines).
- Electronic products.
What to do with remaining IPI credits
The transition rules for these credits depend on the regulation applicable to each production chain. Main recommendations:
- Mapping the stock of IPI credits before the reduction begins.
- Checking whether they can be used in internal operations.
- Consulting tax-planning advice for an alternative credit mechanism within CBS.
ICMS — State-Level Gradualism
Why ICMS is different
ICMS is a state tax — its phase-out depends on an agreement among the 26 states and the Federal District. As a result, the timeline is more gradual and more complex than for the other taxes.
Estimated timeline
The effective reduction percentages and the offsetting mechanisms depend on complementary regulation and on coordination among the federative entities.
What changes for the company
Companies that operate across multiple states need to:
- Monitor the legislation of each state where they operate.
- Adjust prices considering the variation in tax burden between states.
- Map suppliers by state to calculate the impact of the transition.
Remaining ICMS credits
The conversion or use of these credits will depend on the transition rules applicable in each state. The recommendation is to:
- Avoid accumulating ICMS credits beyond what is needed starting in 2028.
- Plan the use of old credits before the reduction begins.
- Consult a tax advisor for each state of operation.
ISS — Municipal Gradualism
Why ISS is different
ISS is a municipal tax — its replacement by IBS varies from city to city according to each municipality’s adherence to the new system.
Estimated timeline
Most affected services
- Technology services (software, IT).
- Professional services (lawyers, accountants, architects).
- Healthcare services (medical clinics, laboratories).
- Education services (private schools, prep courses).
What to do with remaining ISS credits
Because ISS is municipal, the transition requires reading the local legislation and the acts adopting the new system. Main steps:
- Identify the municipality (or municipalities) where the company provides services.
- Consult the specific municipal legislation on the transition.
- Plan the use of ISS credits before the municipality migrates to IBS.
Summary Table for Advisory Work
The Accountant’s Role in the Transition
It falls to the accountant to advise clients at each stage of the phase-out. Vivian Sampaio recommends:
- Through 2027: complete a full inventory of credits for all the old taxes.
- 2028-2030: review the credit-utilization strategy annually.
- 2031-2033: progressively wind down the ancillary obligations of the extinguished taxes.
Next Steps
Phasing out five taxes at the same time is an unprecedented challenge in the history of Brazilian taxation. Preparing in advance, with professional support, is essential to avoid losing credits already established.
Want a complete diagnosis of how the phase-out of the old taxes affects your company or your clients? On /napratica, VMAHUB publishes practical guides for accountants. For a personalized analysis of your situation, talk to our team: [email protected]
Read also:
Sources: LC 214/2025; Receita Federal — Tax Phase-Out Calendar; State Finance Departments; Confederation of Municipalities.
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