Brazil Increases Taxation of Interest on Net Equity and Financial Institutions and Reforms Taxation of Financial Investments and Virtual Assets

Brazil has published Provisional Measure (PM) No. 1.303 of 11 June 2025, concerning the taxation of financial investments and virtual assets and certain other provisions. Key changes include:

• An increase in the withholding tax on interest on net equity (juros sobre o capital próprio - JCP) from 15% to 20%;
• An increase in the social contribution on net profit (CSLL) rate for certain financial institutions from 9% to 15%, including private insurance companies, payment institutions, leasing co…