Brazil Proposes Tax Reform: Flat 17.5% Rate on Financial Investments

Edited by: Elena Weismann

The Brazilian government is proposing a comprehensive reform of the Income Tax (IR) on financial investments. The proposal aims to implement a fixed tax rate of 17.5% on both fixed-income securities and variable-income investments.

This would replace the current progressive taxation system, which ranges from 15% to 22.5%. The exception to the 17.5% fixed rate will be incentivized securities, such as LCI, LCA, CRIs, CRAs, FIIs, and Fiagros, which will have a tax rate of 5%.

Sources

  • Valor Econômico

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