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.
