Brazil's Finance Minister, Fernando Haddad, announced several tax changes aimed at offsetting the increase in the Financial Transactions Tax (IOF).
A uniform income tax rate of 17.5% will be applied to the income from financial applications. This move simplifies the current system, which ranges from 15% to 22.5% depending on the investment duration.
Additionally, the government is considering raising the income tax on Interest on Equity (JCP) from 15% to 20%. This proposal, previously rejected by Congress, is included in the package at the suggestion of parliamentarians. The government also plans to introduce a complementary bill to reduce tax exemptions by 10%.