Brazil and Panama: Accounting firms prepare for growth amid reform and rising complexity
As Brazil pushes through tax reform and ramps up economic diversification, Panama is welcoming the return of investor confidence after major regulatory upgrades. For accounting firms in both countries, the opportunities are growing—but so are the pressures. From ESG to automation and a rising demand for advisory services, the accounting landscape is transforming fast.
Last month, partner Karin Monchak from MGI Worldwide member firm MGI Assurance Auditores Independentes S.S. in Brazil, and partners Eduardo Montúfar from MGI Montúfar & Asociados and Milton Chambonett from MGI Chambonett y Asociados in Panama, were asked by the International Accounting Bulletin (IAB) to share their views on how firms are adapting to a rapidly shifting regulatory and economic environment.
Brazil: navigating reform and rising demand
Tax reform takes centre stage
Brazil’s accounting industry is responding to one of the most significant tax reforms in its history. Karin explains:
“The full economic impact of the reform is not yet realised, as it is being implemented over a lengthy transition period that is set to last until 2033. However, experts and economic models have projected several significant effects. The first is the reduction of the ‘Brazil Cost’. This is a term used to describe the high costs of doing business in Brazil due to bureaucracy and complex regulations. The second is increased productivity and investment, that could result from making Brazil a more attractive destination for both domestic and foreign investment.”
Karin notes that the profession is under strain but also facing opportunity.
“While it faces significant challenges related to fee pressure and a tight labour market for skilled professionals, it is also experiencing robust customer demand driven by complex regulatory changes and the growing need for strategic, high-value services."
Growth through M&A and specialisation
Karin also highlights a rising trend in mergers and acquisitions.
“A lot of the M&A activity has been driven primarily by firms seeking to expand their service offerings, increase their market share, and adapt to a changing regulatory landscape. Brazil’s recent tax reform is a major catalyst. Firms are acquiring or merging with others to gain specialised expertise in the new tax system and to offer comprehensive advisory services to clients navigating the complex transition. This is especially true for firms that traditionally focused on general accounting and now need to build out their tax consulting capabilities.”
Panama: rebuilding trust and attracting investment
A credibility boost and regulatory change
New cybercrime laws, increased financial transparency and stronger ties with other countries is all helping Panama to establish itself as a hub for South America Its removal from the FATF grey list* has also marked a turning point for the country and the industry. Eduardo comments:
“Beyond the immediate figures, the removal from the grey list generated a qualitative effect. It reactivated halted projects and increased interest in key sectors such as logistics, financial services, and maritime transport, which are highly sensitive to the country’s international reputation.”
Uneven opportunity in a competitive market
Despite the boost in investment, Milton expresses concern that smaller firms are not seeing the benefits equally.
“The Big Four dominate the market, capturing around 90%. Second-tier firms get a small share, about 10%, and firms below that level receive very little foreign investment or multinational business.
“There are developments and large companies generating work, but it is uncertain whether that work will reach us. The major firms tend to secure those opportunities. We have to work harder than they do because the market is highly distorted—large contracts go to the Big Four.”
Milton has seen notable growth in non-traditional services, adding:
“There’s growing demand in areas related to anti-money laundering, fraud and corruption — services that fall outside traditional accounting offerings.”
Regulatory clarity drives advisory demand
Eduardo echoes the shift in demand.
“The health of the Panamanian accounting industry can be described as robust but complex, presenting contrasting dynamics. Demand remains solid and evolving. There is high demand for specialised consulting and advisory services related to regulatory compliance, anti-money laundering and terrorist financing, international tax transparency, restructuring, and digital transformation. This demand offsets more traditional compliance work, such as statutory accounting and basic tax return preparation.”
Outlook: opportunity and pressure in equal measure
For firms in both Brazil and Panama, the coming year promises a mix of pressure and potential. Regulatory reform, ESG alignment, and digital transformation are expanding client needs—and reshaping the role of the accountant. Firms that adapt with technology, talent, and strategic partnerships are well placed to thrive.
MGI: A strong regional presence
MGI Worldwide continues to rank strongly across Latin America, testament to the depth and reach of MGI member firms across the region.
To read the full article in the IAB, members can click HERE (login to the MGI Worldwide member portal will be required).
Click the links for more information about our contributing member firms, MGI Assurance Auditores Independentes S.S., MGI Chambonett y Asociados and MGI Montúfar & Asociados.
* The FATF grey list refers to a list maintained by the Financial Action Task Force (FATF) that identifies countries with strategic deficiencies in their anti-money laundering (AML) and counter-terrorism financing (CTF) regimes, but that have committed to work with the FATF to address these issues.
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