Brazil: New alphanumeric format for taxpayer registry
Businesses must prepare their systems for the change, scheduled for implementation in July 2026.
The Brazilian Federal Revenue (RFB) in October 2024 published Normative Instruction (IN) No. 2229/2024, officially introducing an alphanumeric format for the National Register of Legal Entities (CNPJ). The change, scheduled for implementation in July 2026, aims to expand the availability of new registration numbers to meet growing demand. The new format will coexist with the current numeric-only CNPJs.
Key highlights of the change include:
- Transition and coexistence of formats (effective July 2026)
- The introduction of the alphanumeric format will apply only to new company registrations, including new branches of existing companies, starting in July 2026. Existing, purely numeric CNPJs will remain valid and unchanged, and companies holding them will not be required to take any action to update their number.
- Both numeric and alphanumeric CNPJs will be legally valid and will coexist. The new format will maintain the current 14-character structure (XX.XXX.XXX/XXXX-XX), but the first 12 characters may now include both letters (A-Z) and numbers (0-9).
- System and compliance effects for businesses
- The primary effect on taxpayers is the critical need to update internal systems (such as ERPs, accounting, tax and fiscal software) to ensure they can process, validate, and store the new alphanumeric CNPJs. Failure to adapt systems by the deadline could lead to operational disruptions, including difficulties with issuing electronic invoices (NF-e), processing transactions with suppliers and customers, and meeting ancillary obligation requirements.
- The assignment of alphanumeric characters will be random and will not correspond to any specific attribute of the company, such as its location or legal nature. The check digit (DV) calculation will continue to be based on the current algorithm, and the RFB has confirmed that routines for its calculation will be made available.
- Other miscellaneous issues
- Government preparations: The RFB will coordinate with state and municipal tax authorities and other public bodies to ensure their systems are also prepared to handle the new format. To aid in this transition, the RFB has launched a "National CNPJ Simulator," a free tool for developers to test and validate their system adjustments using fictitious alphanumeric CNPJs.
- No new fees: The RFB has clarified that there will be no fees for new registrations under the alphanumeric format, and the process for obtaining a CNPJ remains unchanged. The only costs for businesses will be those associated with their own internal system updates.
While existing CNPJs are unaffected, businesses must prepare their systems for this transition to ensure seamless interaction with new companies and compliance with future fiscal requirements.
For more information, contact a KPMG tax professional:
Paula Smith | ppsmith@kpmg.com
Atila Borba Vaccaro Pidoni Mota | atilamota@kpmg.com
Philippe Stephanny | philippestephanny@kpmg.com
Bruno Siqueira Peitl | bsiqueirapeitl@kpmg.com
Ramon Frias | ramonfrias@kpmg.com
Denis Scarassati | denisscarassati@kpmg.com