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Brazil to Provide New Tax Exemption for Lower Income Earners Along with Minimum Tax for Higher Income Earners and Withholding Tax on Dividends

|Proposed Changes|Brazil
Brazil

On 18 March 2025, the Brazilian Presidency announced the submission of a bill to the National Congress that introduced a new tax exemption (discount) for lower income earners that will be offset with new minimum tax for higher income earners starting in 2026. The new exemption will also be offset through a 10% withholding tax on dividends remitted abroad.

The new exemption includes a full ex…

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