Arbitration Brazil

Brazil Enacts Law Allowing Mediation and Arbitration in Tax and Customs Disputes

By ADR Journal Editorial Desk Published 1 source Alternative Dispute Resolution Arbitration Brazil Customs Disputes Mediation Tax Disputes Brazil

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TL;DR

  • Brazil authorizes mediation and arbitration in tax and customs disputes under new law.
  • Practical implementation awaits supplementary regulations.
  • Binding court decisions now must be followed by the tax administration.
  • The law amends the National Tax Code to include ADR options.

Overview

Brazil has published a new federal law (Lei Complementar nº 236) allowing mediation and arbitration to be used in tax and customs disputes between taxpayers and tax authorities. The measure officially introduces alternative dispute resolution mechanisms for these types of administrative conflicts, but practical implementation awaits future regulation.

What Happened

The Brazilian government has published Lei Complementar nº 236, a new federal law authorizing the use of mediation and arbitration to resolve tax (tributária) and customs (aduaneira) disputes.

The law amends the National Tax Code (CTN) and incorporates various judicial interpretations favorable to taxpayers.

Tax and customs conflicts between taxpayers and authorities may now be addressed through alternative dispute resolution, but the specific procedures for these mechanisms will only become operational once further regulations are enacted.

The law also establishes that the tax administration must comply with binding Supreme Federal Court (STF) and Superior Court of Justice (STJ) decisions within the judicial context.

Context

Prior to this law, tax and customs disputes in Brazil were generally handled through administrative or judicial means, with alternative dispute resolution rarely used.

The move to formalize ADR in tax matters is seen as part of a wider trend in Brazilian legal and regulatory reforms aimed at increasing efficiency.

Why It Matters

  • The legislative change opens ADR avenues for resolving tax and customs disputes in Brazil.
  • It reflects a broader movement to reduce judicial backlog and facilitate taxpayer-government conflict resolution.
  • Impact will depend on upcoming regulations specifying how mediation and arbitration will be practically applied.

Sources

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