Proposed Legislation Introduces New Income Tax Exemption Threshold and Impacts Investment Funds and Receivables Certificates
On 18 March 2025, the Brazilian Federal Government submitted Bill No. 1,087/2025 to the National Congress. It proposes an income tax exemption for individuals earning up to R$5,000.00 per month. Additionally, it introduces a minimum income tax (IRPFM) targeting high-income individuals, introducing a progressive rate that applies to monthly incomes above R$50,000.00, reaching up to […]
Starting in May 2026, Brazilian companies will be mandated to address employees’ mental health
The Brazilian Federal Government, through the Ministry of Labor and Employment and with participation from business and labor representatives via the Permanent Tripartite Commission (CTPP)—a regulatory body composed of representatives from the government, employers, and employees—has included mental health as a criterion in the prevention of workplace harassment. This update is part of the Risk […]
New Law Establishes Regulatory Framework for Offshore Wind Energy in Brazil
Law No. 15,097/2025, enacted on 10 January 2025, establishes the regulatory framework for renewable energy generation in areas under federal jurisdiction, governing the construction and operation of offshore wind farms in Brazil’s territorial waters, continental shelf, and exclusive economic zone. The law also sets out rules for the granting of usage rights in these areas […]
Legal Certainty and Carbon Market Regulation
Law No. 15,042/2024, enacted on 11 December 2024, marks a significant step in regulating Brazil’s carbon market. It consolidates the legal framework for the trading of carbon credits under the Brazilian Emissions Trading System (SBCE), offering greater legal certainty to investors and companies interested in operating within the emissions compensation sector in Brazil. The SBCE […]
Structuring Investments Through Debt in Brazil: Tax Incentives and Risk Mitigation Under Law No. 12,431/2011
The growing use of structured transactions involving tax-incentivized debentures, as provided in Articles 1 and 2 of Law No. 12,431/2011, has established a strategic path not only to optimize tax outcomes for Brazilian issuers, but also to attract foreign capital while reducing legal and operational risks. From the perspective of international investors, this structure offers […]
Carf Rules That Subsidized Loans Granted by BNDES Qualify as Investment Grants
In a recent decision, the Administrative Council of Tax Appeals (Carf) ruled that loans granted by the Brazilian Development Bank (BNDES) may be classified as investment grants and, as such, excluded from the Corporate Income Tax (IRPJ) taxable base calculated under the actual profit regime. The case involved a taxpayer that used BNDES financing for […]
Mandatory Monthly Reporting via the Tax Inclusion Module (MIT) Starting January 2025
The Brazilian Federal Revenue Service (RFB) has issued Tax Directive No. 2,237/2024, replacing the previous directive (No. 2,005/2021), introducing significant changes to the submission process of the Declaration of Federal Tax Debits and Credits (DCTFWeb). As part of modernization and simplification efforts, the Tax Inclusion Module (MIT) has been introduced as an integrated service within […]