Implicit taxes reduce the pre-tax return rate due to investment tax preferences, contrasting with direct, explicit taxes paid to the government. This paper explores implicit taxes in Brazilian publicly traded firms within the differentiated Corporate Governance segments of [B]3 from 2011 to 2021. Using a focused methodology that tests two hypotheses, the study demonstrates that firms in these segments bear a higher implicit tax burden and have their explicit tax benefits supplanted by implicit ones. Results specifically reveal that companies in differentiated segments experience lower pre-tax investment returns than others, pointing to weakened tax management levels. This concise analysis underscores the complex relationship between implicit and explicit taxes and corporate governance practices, necessitating further research for comprehensive understanding.
