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Brazil to Prohibit Deduction of Interest on Net Equity

|Proposed Changes|Brazil
Brazil

The Brazilian Chamber of Deputies is considering draft Bill PL 4258/2023, which was submitted on 31 August 2023 and would prohibit the deduction of interest on net equity (Juros sobre o Capital Próprio - JCP). JCP is a mechanism available to Brazilian companies to compensate their shareholders in addition to profit and dividend distributions. JCP is calculated by applying the Long-Term Interes…

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