Strategic Tax Planning as a Mechanism for Economic Sustainability of Small and Medium Enterprises in Brazil

This article examines the structural relationship between tax regime selection and the economic sustainability of small and medium enterprises (SMEs) in Brazil. Positioned within the broader framework of constitutional economic principles and statutory protections afforded to SMEs, the study analyzes how Brazil’s multilayered tax system generates structural vulnerability when fiscal governance is misaligned. By evaluating the complexity of federal, state, and municipal taxation, as well as the differentiated treatment established under Complementary Law No. 123/2006, the paper argues that strategic tax planning functions as a preventive governance mechanism rather than a mere accounting adjustment. The analysis demonstrates that proper regime selection, compliance structuring, and longitudinal fiscal projection contribute to capital preservation, employment stability, litigation reduction, and macroeconomic resilience. The study advances the understanding of tax planning as an instrument of lawful economic engineering within high-complexity regulatory environments. It highlights the systemic implications of fiscal alignment for both corporate longevity and institutional efficiency, positioning structured tax advisory as a stabilizing factor within Brazil’s SME ecosystem.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-02-12
DOI
https://doi.org/10.5281/zenodo.18623773
Primary Topic
Taxation and Compliance Studies
Type
article
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article

Strategic Tax Planning as a Mechanism for Economic Sustainability of Small and Medium Enterprises in Brazil

Arnaldo de Magalhães Costa
Zenodo (CERN European Organization for Nuclear Research)
Taxation and Compliance Studies
article

Strategic Tax Planning as a Mechanism for Economic Sustainability of Small and Medium Enterprises in Brazil

Arnaldo de Magalhães Costa
article en

Abstract

This article examines the structural relationship between tax regime selection and the economic sustainability of small and medium enterprises (SMEs) in Brazil. Positioned within the broader framework of constitutional economic principles and statutory protections afforded to SMEs, the study analyzes how Brazil’s multilayered tax system generates structural vulnerability when fiscal governance is misaligned. By evaluating the complexity of federal, state, and municipal taxation, as well as the differentiated treatment established under Complementary Law No. 123/2006, the paper argues that strategic tax planning functions as a preventive governance mechanism rather than a mere accounting adjustment. The analysis demonstrates that proper regime selection, compliance structuring, and longitudinal fiscal projection contribute to capital preservation, employment stability, litigation reduction, and macroeconomic resilience. The study advances the understanding of tax planning as an instrument of lawful economic engineering within high-complexity regulatory environments. It highlights the systemic implications of fiscal alignment for both corporate longevity and institutional efficiency, positioning structured tax advisory as a stabilizing factor within Brazil’s SME ecosystem.

Zenodo (CERN European Organization for Nuclear Research)
Responsible consumption and production
Openalex Percentile: Top 63%
Taxation and Compliance Studies
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