On Friday, December 26, 2025, Complementary Law No. 224/2025 (“LC 224”), derived from Complementary Bill No. 128/2025, was published. In general terms, this law reduces federal tax incentives and benefits by 10% and increases the Withholding Income Tax (IRF) rate on Interest on Equity Capital (JCP), as well as the Social Contribution on Net Profit (CSLL) rate for certain institutions in the financial sector.
With regard to tax incentives, LC 224 aims to reduce federal tax benefits by 10% while imposing stricter rules for their granting, extension, and renewal. These rules include, among others, a maximum duration of up to 5 years for such benefits, as well as mandatory outcome evaluation for these incentives.
The 10% reduction established by LC 224 directly affects several federal tax benefits, such as the presumed profit regime, the REIQ program, presumed credits for IPI and PIS/COFINS (including imports), as well as zero or reduced rates for the latter. Furthermore, the Annual Budget Law may list other tax benefits subject to this reduction.
However, certain tax benefits are excluded from this reduction. These include constitutional tax immunities, benefits related to the Manaus Free Trade Zone, zero tax rates for basic necessity products, incentives granted to non-profit organizations, and those linked to investments approved before December 31, 2025.
Specifically for the presumed profit regime, there will be a 10% increase in the presumption rates applied exclusively to the portion of gross revenue exceeding BRL 5,000,000 per calendar year. The tax administration stipulates that this increase will be calculated proportionally for each quarter and will apply to companies with quarterly revenues exceeding BRL 1,250,000.
Especificamente em relação ao lucro presumido, haverá acréscimo de 10% sobre os percentuais de presunção exclusivamente sobre a parcela da receita bruta que exceda R$ 5.000.000,00 no ano calendário. Considerando o regime trimestral de apuração aplicável a esse regime, a Receita Federal entende que o acréscimo de 10% deverá considerar a proporção por trimestre, sendo aplicável às empresas cuja receita bruta exceder R$ 1.250.000,00 por trimestre.
Additionally, LC 224 establishes that if tax incentives exceed 2% of the national GDP, no new programs may be granted or existing ones extended unless compensatory measures are adopted.
Finally, Complementary Law No. 224/25 will come into effect on January 1, 2026, except for tax measures subject to the 90-day precedence rule, which will take effect on April 1, 2026. Companies are strongly advised to evaluate and reassess their tax regimes to mitigate the financial impact of these new rules.
For further information on the subject, we remain at your disposal.
GTLawyers – Tax Team
Law nº 15.265/2025, which establishes the Special Regime for Asset Update and Regularization (REARP), was published on 11/21/2025. It allows the update of the value of real estate and vehicles in the Income Tax and the regularization of lawful undeclared assets.
The law incorporates some fiscal measures that were originally included in the Provisional Measure for the IOF (MP 1.303/2025), which expired in October.
Adherence to REARP will be done through declaration and will allow the choice among the following modalities for assets acquired up to 12/31/2024:
II -Update of the value of motor vehicles, watercraft, and aircraft subject to public registry, as well as real estate located within the national territory or abroad;
II – Regularization of assets or rights that have not been declared or have been declared with omission or inaccuracy in essential data.
The update of assets will serve as an anticipation of the Income Tax on capital gains, allowing the declaration to reflect current market values and promoting asset transparency.
For the update, the following rates will apply to the financial increase calculated on the declared difference:
- Individuals: 4% Income Tax
- Entities: 4.8% IRPJ and 3.2% CSLL
It is important to emphasize that if the updated asset is sold within 5 years (for real estate) or 2 years (for movable assets) after adherence to REARP (except for transfer due to death or partition), the effects of REARP are nullified, with the imposition of Income Tax on the capital gain (deducting the tax already paid, updated by the Selic rate).
Individuals who opted for the asset update provided under Law nº 14.973/2024 for their real estate may migrate to REARP.
Regarding modality II, it allows the regularization of resources, assets or rights of lawful origin held in Brazil or abroad, or repatriated, by residents or those domiciled in the country as of 12/31/2024. This includes even undeclared assets or those declared with omission or error before 12/31/2024, including those already sold.
The total amount of regularized assets will be considered a patrimonial increase acquired on 12/31/2024, subject to Income Tax at a rate of 15%, and a penalty of 100% of the tax owed.
Adherence to REARP, whether for asset update or regularization, must be completed within 90 days from the publication of the law, with the submission of the corresponding declaration and tax payment in a single installment or up to 36 monthly installments.
In addition to REARP, Law nº 15.265/2025 introduces new rules for the taxation of financial operations, such as loans of securities in Brazil and the taxation of hedge operations with derivatives abroad.
Important changes were also made to other laws, such as: Restrictions on the compensation of non-cumulative PIS/Cofins credits unrelated to economic activity; The modernization of medical examinations for sick leave benefits, allowing telemedicine and document analysis; Stricter conditions for granting and maintaining fishing unemployment insurance.
For further information on the subject, we remain at your disposal.
GTLawyers – Tax Team
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.
A set of new rules that promise to simplify the relationship of foreigners and Brazilians living abroad was implemented in Brazil as of January 1, 2025.
The Central Bank of Brazil and the Securities and Exchange Commission of Brazil (CVM) published Joint Resolution No. 13/2024, which significantly modernizes the well-known Non-Resident Account (CND). This initiative seeks to make the business and investment environment more accessible and aligned with international practices.
The CND, at its core, is a bank account in Brazilian reais (BRL) intended for individuals or companies that do not have tax residency in Brazil. It functions as a channel to move funds, invest, and hold assets in the country of origin or of interest, even while living abroad. The innovations introduced by the new Resolution mark a shift toward administrative simplification.
Historically, operating a CND was surrounded by complexities, requiring, for example, a legal representative in Brazil for various operations and the execution of simultaneous and mandatory foreign-exchange procedures. Registration in the RDE-Portfolio system, previously mandatory with the Central Bank of Brazil (Bacen), also added layers of complexity. With the new regulation, the good news is that much of this bureaucracy will be eliminated. The elimination of the requirement for simultaneous FX operations, for instance, reduces costs and speeds up transactions for investments in the capital markets. Likewise, the requirement to register with RDE-Portfolio has been removed.
This modernization paves the way for the CND to become a much more flexible instrument. From now on, funds deposited may be invested directly in a variety of securities and other financial assets in the Brazilian market. Individuals, in certain scenarios and within certain limits, may even be exempted from the need to appoint a legal representative in the country. The goal is clear: to facilitate investment and wealth management without the heavy administrative burden of the past. This flexibility is also vital for those who change their tax residency, as it allows them to maintain investments in Brazil without being required to sell them or close positions.
However, it is crucial to understand that, although more streamlined, the new regime maintains certain important restrictions. It will still be prohibited to transfer investments or securities of non-residents in ways that are not expressly provided for in the regulations of the Central Bank of Brazil or the CVM. In addition, Joint Resolution 13 now expressly prohibits receiving, paying, and other financial movements in accounts held abroad from the CND, with specific exceptions for transactions related to forward, futures, and options contracts on agricultural products, provided they are contracted in Brazil by non-residents and in compliance with the applicable regulations. Compliance with strict Know Your Customer (KYC) and Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) standards remains a non-negotiable priority.
The United States has “15 U.S. Code Chapter 20,” England has the “Insurance Act 2015,” and France has the “Code des assurances.” Following the international trend, Brazil consolidated insurance regulation into its own legislation. On December 9, 2024, Law No. 15,040—known as the “Insurance Legal Framework”—was enacted, repealing provisions of the 2002 Civil Code and introducing new rules for the sector.
Although innovative, this legislation emerges in a robust insurance market. In February 2025, the Superintendência de Seguros Privados (Susep) released a report showing that in 2024, revenues from the insurance, pension, and capitalization segments totaled BRL 435.56 billion, representing 12.2% growth over the previous year. So what actually changes under the new framework?
The 2002 Civil Code addressed the topic in just 46 articles—45 devoted to contractual matters and one to limitation periods. The new Legal Framework significantly expands this body of law to 134 articles, replacing outdated provisions and introducing relevant innovations. Given this broad scope, some key changes stand out.
Contract interpretation: new protection for the policyholder
For the first time, Brazilian legislation sets objective rules for interpreting insurance contracts, aiming to ensure greater transparency. Market expansion presupposes that contractual instruments are accessible and understandable to the public. From now on, risks and interests must be described “clearly and unequivocally,” and the wording most favorable to the insured prevails in the event of discrepancies between the policy, contract template, or technical notes (Art. 9, paragraphs 1 and 2). In addition, advertising materials and pre‑contractual instruments must also be construed in favor of the insured (Art. 57).
Notification of risk aggravation: reinforced duty
Article 14 of the new framework details the policyholder’s obligation to immediately notify the insurer of any substantial aggravation of risk. The policyholder must therefore notify the insurer in a timely manner, reinforcing an already existing duty. The insurer’s decision period has been extended to 20 days, allowing it to demand an additional premium or rescind the contract if the increased risk cannot be covered. If rescission occurs, it must take place within 30 days, and the insurer may proportionally retain costs when refunding the premium.
The Civil Code already required such notification, with loss of coverage in cases of bad faith. Now, the new framework toughens the consequences: willful omission may lead not only to loss of coverage but also to an obligation to pay the premium and reimburse expenses. It also provides for specific effects in cases of negligent omission, to be shaped by case law.
Policyholder’s conduct in the event of a claim: “duty to mitigate the loss”
The new Legal Framework, in Article 66, updates the behavior expected from the policyholder when faced with a covered event. From the moment the claim or its imminence becomes known, the policyholder must promptly notify the insurer by any suitable means and take all necessary measures to avoid or minimize losses, thereby enshrining in Brazil the international principle known as the “duty to mitigate the loss.”
The policyholder must also provide all available information about the claim, its causes, and consequences whenever asked. Willful noncompliance with these obligations—i.e., with intent to harm or to omit relevant information—results in total forfeiture of the right to indemnity or the insured capital, without prejudice to premium collection and reimbursement of expenses borne by the insurer. If the noncompliance is merely negligent, the policyholder loses the right to indemnity only to the extent of the losses caused by the omission.
The legislation also provides mitigating factors: if the insurer proves it learned in a timely manner of the claim or relevant information through other means, even without formal notice from the policyholder, sanctions may be set aside. It is important to note that the beneficiary is also subject to these obligations and penalties when an interested party.
Claims adjustment and settlement: speed and transparency
As to claim handling, management and settlement remain the exclusive responsibility of the insurer, which may appoint its own adjuster without delegating the final decision. Articles 76 and 77 recommend performing the adjustment and settlement phases simultaneously when possible, to speed up the process. The resulting report becomes a document shared by both parties, and in the event of a coverage denial, all documents supporting the insurer’s decision must be made available to the interested party. The response period is 30 days, extendable in complex cases up to 120 days.
Time limits for asserting rights
The new framework also innovates in the time limits for asserting rights related to the insurance contract. Article 126(I) sets, as a rule, a one‑year period from awareness of the triggering event for insurers to collect premiums, for intermediaries to adjust remuneration, and for claims between insurers and reinsurers. The insured also has one year to claim indemnity or a refund of the premium, counted from receipt of the formal denial. For beneficiaries and injured third parties, the period is three years from awareness of the triggering event to assert their rights against the insurer.
The adjustments introduced by the Insurance Legal Framework represent a significant restructuring, enhancing transparency, speed, and legal certainty in the sector. With its 134 articles, the law marks a shift toward regulatory consolidation and alignment with practices in more mature markets, preparing Brazil for a new landscape in the insurance segment.
Finally, note that although enacted in December 2024, Law No. 15,040 is not yet fully in force. The sector is undergoing a transition period, with application expected to begin in December 2025. Until then, insurers, consumers, and regulators are adapting and watching how the new rules will be interpreted and implemented, as the market prepares for this new regulatory framework.
GTLawyers – Tax Team
The Federal Supreme Court (“STF”) denied the Extraordinary Appeal filed by the State of São Paulo against the Court of Justice decision that excluded the levy of the Tax on Causa Mortis Transfers and Donations (“ITCMD”) on donations originating from abroad. The single-judge decision by Justice Cármen Lúcia, issued on June 14, 2025 in RE 1.553.620, reaffirms the understanding that the advent of Constitutional Amendment No. 132/2023 does not automatically validate the collection of the state tax in the absence of a valid state law.
The case concerned the receipt of donations from abroad by a donee residing in the State of São Paulo. The State Treasury argued that Article 16 of CA 132/2023 had overridden the need for a federal supplementary law governing that taxable situation, thereby allowing the immediate collection of ITCMD on donations from abroad made after the constitutional amendment entered into force.
This argument was expressly rejected by Justice Cármen Lúcia. The decision clarifies that CA 132/2023 establishes a transitional competence only until the enactment of the supplementary law required by Article 155, paragraph 1, item III, of the Federal Constitution, but it neither dispenses with that requirement nor validates state legislation declared unconstitutional.
In São Paulo’s case, the situation is aggravated by the declaration of unconstitutionality of Article 4 of Law No. 10,705/2000, issued both by the São Paulo Court of Justice (in 2011) and by the STF (ADI No. 6,830/SP). That provision, which dealt with the taxation of donations with an international connecting factor, remains without effect and cannot serve as a basis for levying ITCMD.
Practically speaking, in the absence of a valid provision in São Paulo’s legislation enacted after CA 132/2023, donations received from abroad remain outside the scope of ITCMD.
Complementary Bill No. 108/2024, currently pending in the National Congress, seeks to fill this regulatory gap. Even so, even after its possible approval, a new state statute will still be required.
The decision directly affects taxpayers engaged in international estate and succession planning, consolidating the impossibility of charging ITCMD on donations originating from abroad.
For further information on the subject, we remain at your disposal.
On 31 July 2025, the São Paulo State Department of Finance and Planning published SER Ordinance No. 43 and SFP Resolution No. 22, authorising the 12th round of the Liquidity Enhancement Programme for Credits of Taxpayers with a History of Acquiring Goods for Fixed Assets (“ProAtivo”), created in 2021.
The programme aims to gradually enable the transfer of accumulated ICMS credits by taxpayers who face difficulties in using these amounts in their operations. Under the new Resolution, a total of BRL 1.5 billion will be released — the highest amount authorised since the programme’s inception.
Despite this significant amount, BRL 1.5 billion represents only about 15% of the stock of accumulated credits already recognised by the Tax Administration, which exceeds BRL 9.1 billion. This release therefore still falls short of meeting the real needs of companies that have been waiting, in some cases for years, for the reimbursement of overpaid taxes.
The 12th round introduces a priority criterion: higher amounts will be allocated to São Paulo companies that, between 2021 and 2024, exported more than BRL 20 million to the United States — a group directly affected by tariff measures adopted by the US government. For these companies, the individual release limit will be BRL 120 million. For other taxpayers, the maximum limit remains BRL 30 million.
Applications can be submitted from 12 August 2025, exclusively through Sefaz-SP’s Electronic Petition System (SIPET). The approved amounts will be paid in 10 monthly instalments starting in September, subject to a global limit of BRL 150 million per month. This means that the amount actually received by each taxpayer will depend directly on the total number of participants. In the previous round, for example, the average paid to companies requesting the maximum amount was around BRL 12 million, due to high demand.
Given the complexity of the process, the instability in releases, and the requirement for specific documentation, it is crucial for companies to be well-advised to ensure safe and efficient participation in the programme, as well as to explore complementary alternatives for recovering accumulated credits.
In today’s landscape of complex commercial transactions, such as mergers and acquisitions or large-scale real estate negotiations, the need for predictability, legal certainty, and financial security is constantly growing. The Legal Framework for Guarantees, enacted through Law n° 14.711/2023, and regulated by CNJ Regulation n° 197/2025, has introduced the Notarial Guarantee Account (also referred to as the Escrow Account) as an essential instrument for ensuring neutrality, security, and efficiency in private legal transactions.
The Notarial Guarantee Account allows parties to deposit funds in an account managed exclusively by a notary public. These funds can only be released upon the objective verification of conditions pre-agreed between the parties, ensuring increased control, transparency, and integrity in the transaction process. In this framework, the notary acts as an impartial third party, safeguarding that transactions proceed securely and in compliance with the negotiated terms.
The notary’s role is strictly neutral, ensuring that the terms of the contract are clear, objective, and verifiable, leaving no room for subjective interpretation. Should the agreed conditions not be met or disputes arise, the notary will issue a notarial deed, suspending any movement of the funds until the parties resolve the conflict, either judicially or amicably, as provided in Article 9 of the Regulation.
Beyond providing legal certainty, CNJ Regulation n° 197/2025 aligns with the legislative trend of dejudicialization and modernization of guarantee instruments, bolstering the overarching goal of the Legal Framework for Guarantees, which aims to bring greater speed and efficiency to private transactions.
Under Article 3, the Notarial Guarantee Account can be used for the following purposes: (i) deposit of funds pertaining to legal agreements, whether or not formalized by notarial deeds; (ii) fiduciary management of funds subject to agreed and objectively verifiable conditions; (iii) other scenarios that adhere to the public function of the notary, provided they do not involve the interpretation of complex contractual clauses or issues requiring judicial intervention.
This service is particularly advantageous in transactions involving suspensive or resolutory conditions, such as: (i) the purchase and sale of real estate subject to the regularization of tax liabilities, such as IPTU, or the issuance of clearance certificates; (ii) terminated agreements or conditional donations, where the release of deposited funds depends on compliance with agreed terms; (iii) business transactions such as M&A operations, involving substantial sums and milestone-based payment structures.
Funds deposited in the Notarial Guarantee Account are protected and isolated from the assets of both the parties and the notary, ensuring integrity until the agreed conditions are satisfied. All conditions and transactions must be electronically registered in the CNB/CF system, ensuring transparency and data protection in compliance with the General Data Protection Law (LGPD).
Additionally, funds may remain in the Notarial Guarantee Account for a maximum of 180 days, extendable upon justified grounds. Should the deadline pass without compliance with the required conditions, the co-partnering bank may return the funds to the original depositor.
The notary’s remuneration is borne by financial institutions, exempting the parties from direct costs. However, additional acts, such as the issuance of notarial deeds, may incur fees per applicable state legislation. Operational costs include specific account maintenance fees, governed by agreements between the Notarial College and financial institutions.
Moreover, the Regulation is innovative in promoting not only the dejudicialization of procedures but also the expansion of digitalization, with the use of electronic systems managed by the CNB/CF. This modernization enables the secure registration of all conditions, transactions, and documents related to the legal agreement, ensuring not only agility and transparency but also compliance with the General Data Protection Law (LGPD).
The Notarial Guarantee Account is a direct reflection of the advancements brought by the Legal Framework for Guarantees, consolidating the role of notaries as central agents in ensuring balance and security in private transactions in Brazil. This instrument represents a significant step forward in the modernization of notarial services, aligning the country with established practices in international jurisdictions and strengthening trust in the business environment.
By adopting practices aligned with the best international standards, such as the Escrow Account in the United States, Brazil modernizes its approach. Accordingly, CNJ Regulation n° 197/2025, by regulating the Notarial Guarantee Account, not only creates an indispensable tool for the legal and business market but also enhances the protection of the parties’ rights while contributing to cost and time savings—factors that are increasingly becoming essential benchmarks for competitiveness in private transactions.
Artificial Intelligence (AI) is already an integral part of key sectors such as healthcare, transportation, finance, and services. Given its transformative potential — but also the risks associated with unchecked use — Brazil is moving forward with a robust regulatory proposal: Bill No. 2338/2023, currently under review in the Chamber of Deputies.
The bill’s core aim is to establish clear rules and fundamental principles for the development and use of AI in the country. It is guided by values such as human dignity, privacy, equality, and transparency, encouraging responsible and ethical innovation. It also seeks to ensure essential user rights, including the explainability of automated decisions, the possibility of contesting them, and continuous human oversight in sensitive processes.
A central feature of the bill is the risk-based classification of AI systems. Two main categories are proposed:
- Excessive risk, which includes uses that are outright prohibited — such as systems that exploit individual vulnerabilities, manipulate behavior subliminally, or enforce unfair social scoring mechanisms, particularly in governmental contexts.
- High risk, covering applications with direct impact on fundamental rights in areas such as health, justice, security, credit, employment, education, critical infrastructure, autonomous vehicles, and biometric identification. For these, the bill mandates stringent governance measures, including public algorithmic impact assessments, safety testing, and human oversight mechanisms.
Another key pillar of the proposal is governance and accountability. All AI systems, regardless of risk level, must have clear technical documentation, identifiable responsible parties, understandable decision explanations, and strategies to prevent algorithmic discrimination. In high-risk cases, civil liability will be strict — meaning companies can be held liable without proof of fault — with reversal of the burden of proof in favor of the affected party.
As for penalties, the bill establishes fines of up to R$ 50 million or 2% of the infringing group’s revenue, in addition to other sanctions such as warnings, suspension, or permanent bans on system use.
The proposal also provides for the creation of the National AI Regulation and Governance System (SIA), coordinated by Brazil’s National Data Protection Authority (ANPD), and involving regulators, experts, and civil society representatives. This body will be responsible for overseeing implementation, periodically reviewing the rules, and harmonizing their application across industries.
As of July 2025, Bill 2338/2023 is under review by a special committee in the Brazilian Chamber of Deputies. Already approved by the Senate, it remains a legislative priority, with ongoing public discussions. Its final approval could represent a turning point in the regulation of artificial intelligence in Brazil.
For companies developing or using AI technologies, this bill represents a strategic milestone: it offers greater legal certainty, aligns Brazil with global regulatory trends (especially the EU’s AI Act), and lays the foundation for a safe and responsible digital transformation.
At GT Lawyers, we are closely monitoring the developments of PL 2338/2023 and are ready to support your company with regulatory compliance, AI governance best practices, and legal risk mitigation strategies.
Provisional Measure No. 1.303, published on June 11, 2025, is part of the government’s announced fiscal adjustment plan. It brings significant changes to the taxation of financial investments and virtual assets, as well as other amendments to Brazilian tax legislation. These measures aim to redesign the capital taxation structure, with an impact on various segments of the financial and investment markets.
The provisional measure introduces various provisions that may be considered a full reform of financial market and capital market taxation. Key measures include:
- Securities currently exempt from Income Tax (LCI, LCA, CRI, CRA, CPR, LIG, LCD, incentivized debentures): Starting January 1, 2026, such securities will be subject to a 5% income tax rate for individuals on new issuances or renegotiations. Losses from these securities may not be offset in the Annual Adjustment Declaration (DAA). terão alíquota de IR de 5% para pessoas físicas a partir de 1º de janeiro de 2026, para novas emissões ou renegociações. As perdas com esses títulos não poderão ser compensadas na Declaração de Ajuste Anual (DAA);
- Fixed Income Investments (CDBs, Treasury Bonds, Debentures): Replacement of the progressive tax bracket (22.5% for up to 180 days; 15% for over 720 days) with a single rate of 17.5%, regardless of the investment period.
- Fixed Income Funds, Mixed Funds, ETFs: The regressive rates will be replaced by a flat 17.5% rate, maintaining the taxation under the so-called “come-cotas” system.
- Stocks and Equity Funds: Replacement of the 15% tax rate for regular operations and 20% for day trades with a unified rate of 17.5%. Additionally, the tax rate for Interest on Equity (JCP) will increase from 15% to 20%.
- Cryptocurrencies and Digital Assets: Replacement of the progressive table (15%-22.5%) on gains above BRL 35,000/month with a flat 17.5% rate for all operations, with allowance for loss offsetting.
- Real Estate Funds (FIIs) and Fiagros: End of the exemption on dividends under certain conditions (exchange trading, number of investors), which will now be taxed at 5%. The 20% rate on capital gains will also be replaced with a flat 17.5% rate.
- Infrastructure Funds (FI-Infra): Termination of exemptions on dividends and capital gains, to be taxed like FIIs and Fiagros.
Provisional Measure No. 1.303/2025 unifies and simplifies income tax rates on investments, raises taxation on incomes previously exempted, creates a more transparent system, but eliminates advantages that favored certain assets solely due to favorable tax treatment.
If the MP is converted into law, its practical effects will start in 2026 and only apply to assets issued or negotiated after that date, respecting acquired rights for existing stock.
Additionally, the MP aligns CSLL (Social Contribution on Net Profit) rates for the financial sector. According to Article 62 of the MP, which modifies Law No. 7.689/1988, payment institutions (including many fintechs) that previously benefited from a reduced 9% rate will now be taxed at 15%.
An important point is that the MP broadens the circumstances under which a tax offset declaration will be deemed invalid, barring the use of:
- (i) credits based on non-existent collection documents;
- (ii) PIS/Cofins credits unrelated to economic activity.
Moreover, the MP increases taxation on Interest on Equity (JCP). Article 63 of the MP, which amends Law No. 9.249/1995, establishes that JCP will be subject to withholding tax (IRRF) at a 20% rate. The rate will apply upon payment or credit to the recipient.
Finally, the MP establishes an 18% contribution on Gross Gaming Revenue (GGR) (i.e., net revenue of betting operators, after deducting prizes paid to winners and income tax). This contribution will be collected monthly, with 6% allocated to social security, particularly healthcare initiatives.
We remain available for any additional clarifications.
