Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 41

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 3
Chunk 41
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3.D.10.01-07 Changes in taxes and other fiscal assessments may adversely affect us.
 The Brazilian government regularly enacts reforms to the tax and other assessment regimes to which we and our clients are subject. Such reforms include changes in the tax rates and, occasionally, the enactment of temporary taxes, the proceeds of which are earmarked for designated for specific governmental purposes. The effects of these possible changes and any other changes that may result from the enactment of tax reforms have not been, and cannot be, quantified. There can be no assurance that, once implemented, any of these reforms will not have an adverse effect upon our business.
 In times of constantly changing fiscal trends, with increased public spending and public debt increasing as a proportion of GDP, effective tax rates may rise at a pace higher than expected, affecting the growth of our portfolio and increasing volatility. Moreover, the risk of changes in taxes and fiscal assessments may materialize as the government may target taxation towards certain sectors, such as the financial markets, with negative impacts on the results and investments of businesses operating in the segment.
 In February 2023, the STF issued a decision recognizing that final and unappealable decisions with respect to a certain taxpayer cannot prevail over subsequent decisions made by the STF that apply to all taxpayers. This decision has not had any impact on us.
 On December 20, 2023, Constitutional Amendment No. 132/23 was published, setting out the guidelines for tax reform in Brazil. The Constitutional Amendment reorganizes the framework for consumption taxes in Brazil, with the main milestone being the replacement of five current sales taxes (PIS, COFINS, ICMS, ISS and IPI) with a unified Value Added Tax (VAT), divided into two types (dual VAT): (i) the Contribution on Goods and Services (CBS), directed to the federal government, and (ii) the Tax on Goods and Services (IBS), which will be distributed to states, municipalities and the Federal District. The Constitutional Amendment stipulates that in relation to revenue from financial intermediation, the calculation bases and rates should be defined in order to maintain the current tax burden applied to loan operations (Spread - PIS and COFINS) until the end of the fifth year after the regime comes into force (with no increase or decrease in the sector’s revenue).

12 – Form 20-F 2024 | Bradesco
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We cannot estimate the impacts that the implementation of a new tax reform will have on our operations