Cost Sharing and the Incidence of IBS and CBS

Complementary Law No. 214/2025 expanded the scope of IBS and CBS to cover onerous transactions based on economic substance, even in the absence of profit. In the context of cost sharing, the key issue is distinguishing pure reimbursement (payments made on behalf of and in the name of third parties, excluded from the taxable base) from the allocation of a company’s own costs, which may be characterized as the provision of intra-group services and, therefore, subject to taxation. Proper qualification and documentation will be essential to mitigate risks under the new regime.