Digital Entrepreneurs Suffer from New Tax and Seek Refuge in the U.S.

Starting January 1, 2026, a new chapter in the Brazilian tax crisis is set to hit digital entrepreneurs, e-commerce owners, and marketing agencies hard. Meta (the parent company of Facebook and Instagram) announced that it will directly pass a 12.15% tax charge to Brazilian advertisers on Meta Ads campaigns.

The impact is direct: if you currently invest R$1,000 in ads, your bill will rise to approximately R$1,138.30. In other words, an additional 12.9% just to maintain the same performance.

The measure, resulting from the new Tax Reform and the adjustment to the international tax standard, combines PIS/COFINS (9.25%) and ISS (2.9%)—cutting deeper into advertisers’ margins. In practice, this means less profit, more pressure, and greater difficulty scaling digital businesses in Brazil.

The Weight of Taxes: Brazil Becomes a Battleground

The news struck the digital market like a bomb. According to the Brazilian Association of Electronic Commerce (ABComm), more than 1.6 million online stores depend on paid ads to attract customers.

The new tax could destroy the profit margins of small and mid-sized businesses already burdened by high costs and fierce competition.

“It’s a domino effect,” says economist Luiz Almeida, a specialist in digital taxation. “With more taxes on ads, acquisition costs rise, margins shrink, and many entrepreneurs will be unable to pass this increase on to consumers.”

The issue goes beyond paid traffic. Brazil’s complex bureaucracy and heavy tax burden—over 34% of GDP—place it among the most expensive countries in the world to do business.

Who Suffers the Most

• E-commerce businesses that rely on constant advertising to generate sales.
• Digital marketing agencies that must justify higher media budgets to clients.
• Course creators and info-product producers dependent on large ad volumes to scale.

These sectors, heavily dependent on Meta Ads and other paid traffic platforms, will be the first to feel the impact.

The Path to Survival: Starting a Business in the U.S.

Faced with this suffocating scenario, an increasing number of Brazilian entrepreneurs are discovering a solution: opening a company in the United States.

Unlike Brazil, several U.S. states offer 0% tax on international sales. This means a digital business can operate legally, earn in dollars, and avoid the full weight of Brazilian taxation.

Furthermore, forming a U.S. company brings a range of benefits beyond tax reduction:

• Full support in Portuguese, eliminating language barriers.
• Complete company formation in just a few days.
• Specialized accounting and tax consulting.
• Issuance of an ITIN (U.S. tax identification).
• Official tax address in the U.S.
• Private incorporation for confidentiality.
• Access to major U.S. banks and payment processors.
• Lower transaction fees and faster payouts.
• Legal asset protection and corporate anonymity.

In practice, entrepreneurs can pay 0% tax on international profits, drastically reduce operational costs, and gain credibility when doing business with global partners.

Destinations Beyond the U.S.

While the United States remains the preferred choice, countries like Georgia and Estonia also offer simplified tax regimes designed to attract digital businesses.

Experts agree: for entrepreneurs who aim to compete globally, remaining confined within the Brazilian tax system means surviving, not thriving.

The Urgency of the Moment

Meta’s announcement is just the beginning. With the ongoing Tax Reform, new taxes such as CBS and IBS are expected to further increase the financial burden on digital companies.

The contrast is clear:

• Entrepreneurs in Brazil: pay up to 34% in taxes plus 12.9% in ad taxes.
• Entrepreneurs abroad: operate with 0% tax on international sales and 0% tax on advertising.

With 2026 approaching, the decision must be made now. Each month within Brazil’s tax system means less profit, less competitiveness, and more financial strain.

Conclusion

The end of profitable digital advertising in Brazil is no longer a prediction—it’s a date marked on the calendar: January 1, 2026.

Given this shift, there’s only one strategy that can ensure the survival of digital businesses: opening a company in the U.S. or in other countries with smarter tax systems.

Entrepreneurs who act early will access better conditions and protect their assets before new restrictions take effect.

Take control of your business future today. Learn how to open your U.S. company, pay 0% taxes, and secure long-term freedom with LibertyPass.

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