The Brazilian House of Representatives has unanimously approved Bill No. 1,087/2025, proposing wide-ranging changes to individual income tax (IRPF), dividend taxation, and high-income levies, largely retaining the Federal Government’s original text.
A minimum high-income tax (IRPFM) will apply to annual incomes above BRL 600,000, with progressive rates up to 10%, alongside a 10% withholding on dividends, though certain 2025 profits remain exempt. The bill also includes updated deductions, policies to adjust progressive rates, and mechanisms to offset revenue losses for states and municipalities. It now awaits Senate approval and presidential sanction, with implementation expected in 2026.
Tax experts from our Brazilian member firm Demarest have published a more detailed overview of the bill and its implications, which can be read here.