Income Tax Reform: bill approved by House of Representatives
On September 2, Brazil’s House of Representatives passed a bill (PL 2337/21) amending the rules for income tax. The bill is now set to be analyzed in the Senate, where it may be approved, rejected or adjusted.
The bill’s current wording states that profits and dividends will be taxed at 15% as withheld income tax. At the same time, the bill proposes a reduction in corporate taxation (IRPJ/CSLL) from 34% to 27 or 26%.
There are also several other amendments, including changes to how investment funds are taxed.
In this episode, two specialists from the firm’s Tax practice – partners Lisa Worcman and Gil Mendes – analyze the proposed changes and debate how PL 2337/21 could eventually be approved in Congress, while also discussing the potential impacts on companies, investors and shareholders.
The legal developments analyzed in this episode are relevant as of the date of publication.
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