Brazil’s Lower House Approves Income Tax Reform: Exemption up to BRL 5,000, New Tax on High Incomes
On Wednesday evening, 1 October, the House of Representatives approved the report presented by Arthur Lira on Bill No. 1087/25. The proposal exempts individuals earning up to BRL 5,000 per month from income tax and, as a compensatory measure, introduces taxation on earnings above BRL 50,000 per month or BRL 600,000 per year. The approved […]
Brazil confirms reduced withholding tax on royalties under Brazil–France treaty
On 25 March 2025, the Brazilian Federal Revenue Service issued Cosit Ruling No. 54/2025, clarifying that payments made by a Brazilian company to its French-based parent company for software licensing should be classified as royalties and subject to a 10% withholding income tax (IRRF) rate. This reduced rate applies under the Brazil–France Double Taxation Treaty, […]
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 […]