In the proposal that came out of the Chamber, the deputies incorporated the text of the Provisional Measure (MP) into the project 1,184, of 2023, which deals with the taxation of exclusive funds, with several changes to the Executive's original proposal. The rate of 10% proposed by the government for those who anticipate updating the value of accumulated income until 2023 was lowered to 8%. The linear rate of 15% on income approved in the Chamber contrasts with the progressive rate of 0% to 22.5% initially proposed by the Presidency of the Republic.
Individual taxpayers will have to separately declare income from capital invested abroad, whether financial investments, profits or dividends from controlled entities.
Data from the Central Bank shows that Brazilians have around R$ 200 billion in assets abroad, the majority of which are stakes in companies and investment funds.
The project reduces the revenue initially foreseen at a time when the government needs to be able to raise R$ 168 billion to meet the target of zeroing the primary deficit in 2024, according to the new fiscal framework proposed by the Executive itself and approved in August by Congress. Taxing the super-rich would be one of the main sources of obtaining these resources.
Among other measures, the proposal also establishes income tax of 15% (long-term funds) or 20% (short-term funds, up to one year) on income, collected once every semester through the “come -quotas” starting next year. Funds with longer investment periods will have lower rates due to the IR regressive table. Closed-end funds — which do not allow the redemption of shares within their duration — will also have to pay income tax on accumulated gains. Currently, these funds are only taxed at the time of redemption of the investment, which may not be done.
The matter had already been approved by the Economic Affairs Committee (CAE) on November 22.
Source: Senado Agency
