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 exemption on monthly income up to BRL 5,000 per month with a reduced exemption on monthly income up to…