THE TAXATION OF PROFITS AND DIVIDENDS DISTRIBUTED TO RESIDENT INDIVIDUALS WILL FOLLOW THE FOLLOWING RULES:
Taxation exclusively within the scope of the Minimum IRPF (Individual Income Tax) - focusing on high incomes:
Imposition of a Withholding Income Tax (IRFonte) at a rate of 10% on monthly distributions exceeding R$ 50 thousand ;
Requirement for an adjustment to the Annual Adjustment Declaration, considering:
- The sum of annual income exceeding R$ 600 thousand or R$ 1.2 million ;
- The minimum IRPF in the Annual Adjustment must exclude capital gains, accumulated income, and donations/inheritances ;
- The minimum IRPF will vary from 1% to 10%, depending on the income bracket ;
- The following can be deducted from the minimum IRPF: the IRPF due in the Annual Adjustment Declaration, the IRFonte withheld during the period (on income subject to minimum IRPF), and the definitive IRPF (also on amounts taxable by the minimum IRPF).
For dividends: Integration with the effective corporate income tax burden (IRPJ/CSLL), with the application of reducers if the minimum IRPF rate combined with IRPJ/CSLL exceeds 34%, 40%, or 45%, depending on the company type.
THE TAXATION OF PROFITS AND DIVIDENDS DISTRIBUTED TO NON-RESIDENTS WILL FOLLOW THESE RULES:
Taxation by IRFonte at 10 % at the moment of payment, credit, remittance, delivery, or employment.
Integration with the company's effective IRPJ/CSLL burden: Should the sum of the company's effective IRPJ/CSLL rates plus the IRFonte exceed the sum of the nominal IRPJ/CSLL rates (34 %, 40 %, or 45 %), a credit right will be granted within 360 days from the end of each fiscal year.
The credit must be equivalent to the difference between the effective IRPJ/CSLL rate, plus the 10 % IRFonte, and the nominal IRPJ/CSLL rate (34 %, 40 %, or 45 %, depending on the company's activity).
POINTS OF ATTENTION
- Taxation of results accrued until December 31, 2025: Maintenance of the current exemption, provided that their distribution was approved until December 31, 2025, and payment occurs under the terms originally stipulated in the approval act.
- Regulation of the credit right for non-resident investors.
- Capital increase with profits and dividends and maintenance of taxation.
- Impacts related to operating profit (SUDAM/SUDENE), Lei do Bem (Goodwill Law), PAT, incentivized depreciation, goodwill amortization, tax losses, interest on equity, and others. goodwill, prejuízos fiscais, juros sobre capital próprio e outros.
- Amendments to Bill 1.087 will be subject to a new bill, offering opportunities for adjustments and improvements to the tax regime established for dividends.
