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Tax Reform and Contractual Certainty: What Advances Could the New Civil Code Bring for Business?

31/10/2025

With clearer rules tailored to today’s realities, Brazil’s proposed new Civil Code aims to strengthen the business environment and drive economic development.

PL 4/2025 — PL stands for Projeto de Lei, i.e., Bill No. 4/2025 — updates core areas of Brazilian civil legislation, seeking to cut red tape, promote legal predictability, and increase confidence in contractual relationships.

Key advances include:

  • More objective contracts and guarantees, with rules that reduce disputes and simplify negotiations
  • Modernized civil liability, incorporating new technologies and the complexities of the digital environment
  • Clearer rules for leases, mergers, acquisitions, and succession, enabling faster and safer business decisions

These changes reflect an effort to align Civil Law with market practice, creating a more attractive environment for investment, innovation, and corporate governance.

Beyond enhancing legal certainty, the new Code promises a more efficient landscape for companies of all sizes, strengthening the relationship between the private sector and the State and encouraging business formalization across the country.

➡️ In the next article of this series, we’ll explore how PL 4/2025 redefines the limits of civil liability and reinforces the importance of corporate governance within organizations.

The first article in the series can be found here.

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