Monday, April 22, 2024

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The Government is preparing the IR project which changes the limits and deadlines for the taxation of investments in the stock market

The Finance Minister stated that the project is mature and has been agreed with the market

BRASILIA-IL government will send a bill to improve tax rules financial investments. The draft text, which the Station/Broadcast had access, changes the frequency of taxation of capital gains in handbagand increases the exemption limit for Income tax for equity investors from R$20 thousand to R$60 thousand. The 15% commission on transactions will be maintained.

The proposal also reduces the tax rate from 20% to 15% GO charged for operations daily trading – where the investor buys and sells an asset on the same day.

Finance Minister Fernando Haddad said the project is mature and has been agreed with the market. The measure, he said, constitutes the income tax reform package that will be sent to Congress this year. The expectation is that the proposals will go forward after the regulation of the consumption tax reform, approved by Parliament last year.

Another chapter of the project standardizes the tax rate on income earned by savings and loan associations to 15% and corrects problems in the taxation of market index funds (ETFs), which include cryptoassets.

The proposal also intends to allow the deductibility of losses arising from transactions in hedged derivatives abroad, similarly to what is already permitted for hedges carried out on foreign exchanges. The text also resets the IR rate on these transactions to zero.

According to the project to which the Station/Broadcast accessed, the set of measures contained in this bill does not present a tax exemption for the year 2024. There is a planned exemption estimated at R $ 190 million for the years 2025, 2026 and 2027, in addition to the deferral of revenue of R$$210 million for 2025 and 2026.


The project consolidates the taxation rules for income from bonds and securities (TVM) earned by individuals resident in the country. The rules apply to interest and earnings earned in secondary market trading of public and private debt securities, such as CDBs, guarantee bonds, commercial securities notes and others, for example.

There is a general rule for the impact of the IRRF on income deriving from financial investments made in the country, with maintenance of the monetary base to define the moment of taxation and decreasing rates (from 22.5% to 15%).

Banks, intermediaries, distributors, insurance companies and other legal entities in the financial sector, including factoring companies and securitization companies, will be exempt from IRRF withholding tax. Equity, commodity and futures markets as well as settlement and clearing entities responsible for market infrastructure will also be exempt.

“In all these hypotheses, the IRRF was a mere advance of the IRPJ, maintaining the regular incidence of this tax”, we read in the text, which also clarifies that investment funds and immune entities are exempt from withholding tax.

The Finance Minister stated that the project is mature and has been agreed with the market.

Source: Terra

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