EN 
PT_BR 
Complementary Law No. 224/2025, published by the Federal Government at the end of 2025, promotes changes in the policy of tax incentives granted by the Union and will take effect from 2026. The measure directly impacts rural producers in Mato Grosso do Sul, especially in the cost of inputs and the social security burden on commercialization.
The new legislation establishes a reduction of 10% in several existing tax benefits, such as exemptions, zero rates, reductions in the tax base, presumed credits, and special regimes.
In practice, operations that were previously completely tax-exempt will now be subject to a minimum tax payment, and benefits that were previously fully applicable will no longer apply in their entirety.
What changes for the producer:
Among the main impacts on the agricultural sector are:
Taxation on inputs
Fertilizers, pesticides, and other inputs that previously had a zero PIS and Cofins tax rate will, starting in April 2026, be subject to the full tax rate of these taxes.
Although the percentages are low (0.165% for PIS and 0.76% for Cofins), the effect occurs throughout the entire production chain, increasing the operational cost per hectare.
Reduction of presumed credits
Federal presumed credits can now only be used for 90% of the originally permitted amount.
The exception occurs when the credit is linked to the employer's social security contribution on the payroll, in which case there is no reduction.
Changes to Presumed Profit
Producers who are legal entities opting for the Presumed Profit regime – a tax system in which the Federal Revenue Service estimates a company's profit by considering a fixed percentage of gross revenue – will have an increase of 10% in the presumption percentages on the portion of annual revenue that exceeds R$ 5 million, which may increase the effective tax burden.
Increase in rural social security contributions
The Funrural tax rate will also be adjusted:
Individual: from 1.50% to 1.63%;
Legal Entity: from 2,05% to 2,23%.
Since the contribution is based on revenue, the final impact will depend on each producer's sales volume.
What doesn't change
The law does not alter state taxes, such as the ICMS (Value-Added Tax), does not create a new tax for the agricultural sector, and does not modify the export protections provided for in the Federal Constitution.
According to the president of Aprosoja/MS, Jorge Michelc, the current situation demands attention and planning from producers. “Our state has a solid foundation for development in agriculture. Changes in the taxation of inputs or in social security contributions can have significant repercussions throughout the production chain. Therefore, it is essential that producers review their tax and financial planning for 2026.”
