Tax reform in Brazil and regional growth in Panama drive new opportunities
Brazil and Panama are experiencing significant changes in their business environments, bringing fresh opportunities and new challenges for accounting firms. With Brazil navigating a major tax overhaul and Panama strengthening its position as a regional business hub, regulatory developments, technology and evolving client expectations are increasingly reshaping professional services in both markets.
In the September issue of International Accounting Bulletin (IAB), Karin Monchak, audit partner at MGI Worldwide member firm MGI Assurance Auditores Independentes S.S. in Brazil, and Milton Chambonett, general director of member firm MGI Chambonett y Asociados in Panama, shared their perspectives on these developments and their impact on the profession.
Brazil: tax reform takes centre stage
Brazil is transitioning towards a dual VAT system, with 2026 marking the testing phase and gradual implementation scheduled between 2027 and 2033. The reform is creating operational challenges but also significant opportunities for accounting firms able to guide businesses through the transition. US tariffs are adding uncertainty for Brazilian exporters, encouraging companies to explore alternative markets and adapt their strategies.
New opportunities for growth
Karin Monchak, audit partner at MGI Assurance Auditores Independentes S.S., highlights particularly strong growth in tax advisory, reform implementation, compliance, digital transformation and technology consulting.
“While Brazil has not experienced a dramatic consolidation wave in the accounting profession, there is a clear trend toward strategic partnerships, acquisitions, and consolidation among firms looking to strengthen their advisory capabilities, invest in technology, and respond to increasing regulatory complexity.
Demand has also increased for AI-driven automation solutions, as businesses look to improve efficiency, manage compliance obligations."
— Karin Monchak
Panama: strengthening its position
Panama's improving international reputation, investment incentives and stronger trade relationships are helping attract foreign investment. Greater regulatory transparency is also changing what international businesses expect from professional advisers.
“International investors are now conducting much more rigorous due diligence than in the past, they are no longer attracted solely by Panama's tax and geographic advantages; today they demand high standards of corporate governance, economic substance, regulatory compliance, transparency, internal controls and high-quality financial reporting.”
— Milton Chambonett
Regulation, talent and technology
New economic substance requirements and stronger audit oversight are increasing demand for specialised advice. However, firms face pressure on fees, recruitment and training as clients seek more sophisticated services.
Milton highlights growing opportunities in transfer pricing, regulatory compliance, outsourced CFO services and technology risk assessments.
Looking ahead, he sees technology as a major driver of change.
“We believe the profession's greatest transformation will come from technology,” said Milton. “Artificial intelligence, automation, data analytics and the continued digitalisation of tax administrations will fundamentally reshape the traditional accounting business model.”
Looking ahead
For accounting firms in Brazil and Panama, regulatory change is creating opportunities beyond traditional compliance. Investment in technology, specialist expertise and advisory capabilities will be increasingly important as both markets evolve.
Click the links for more information about our contributing member firms, MGI Assurance Auditores Independentes S.S. and MGI Chambonett y Asociados.
To read both Country Reports in the September edition of the IAB, members can click HERE (login to the MGI Worldwide member portal will be required).
MGI Worldwide is a trusted community of professionals connecting firms and people worldwide across audit, accounting, tax, legal and consulting services. With some 440 locations across 100 countries, you can feel supported wherever you choose to do business.