The National Council for Tax Policy in Brazil (Confaz) has recently approved a convention allowing states and the Federal District to grant exemptions or suspensions of the ICMS (Tax on Circulation of Goods and Services) related to the organization and execution of the FIFA Women's World Cup in 2027. This approval, formalized through ICMS Convention No. 4 of 2026, was made during the 418th Extraordinary Meeting on January 27. The convention does not automatically impose tax exemptions but permits each state to modify their legislation accordingly to incorporate this benefit.

The authorization encompasses a broad range of operations including imports, internal and interstate sales, as well as transportation and communication services associated with the event. However, the exemption is contingent upon existing exemptions from federal taxes on the same operations. This measure not only aims to facilitate the logistics and operations necessary for hosting the World Cup but also incentivizes economic activity in various sectors tied to the event, potentially stimulating growth and investment in the region.

The implications of this decision are significant, as it not only indicates Brazil's commitment to hosting the Women's World Cup but also highlights the role of tax policy in large-scale sporting events. By exempting taxes related to tournament operations, Brazil hopes to enhance its attractiveness as a host country while also fostering local business participation and encouraging international investments. Moreover, successful implementation of this measure could set a precedent for future events and tax policies in the sphere of sports in Brazil.