Brazil: Corporate tax measures in pending tax reform
Updated version includes proposals that would affect corporate taxpayers.
Updated version includes proposals that would affect corporate taxpayers.
A new version of a tax reform bill was presented earlier this week.
A new version in the form of a substitute was presented for Bill No. 2337 of 2021. The updated version includes proposals that would affect corporate taxpayers in areas concerning:
- Corporate income tax rate (IRPJ)
- Dividend distribution
- Deductibility of interest on equity (JCP)
- Anti-deferral rule for individuals
- Obligation to opt for the actual profit proposed for some real estate companies and companies operating voice and image rights
- Capital gains and losses of assets
- Goodwill deductibility
- Exchange variation on investment abroad
- Capital reduction in assets or rights delivered to controlling partners or partners with significant influence in the previous year and in the following 12 months
- Payment of capital in companies and other entities abroad
- Taxation regime applicable to SCPs and ostensible partner
- Capital gain obtained from the indirect sale of assets located in Brazil
- Rate applicable to income from investments in bonds and securities and open-end Investment Funds
- Minimum composition of equity of Equity Investment Funds
- FIDC and FIC FIDC taxation rules
- Taxation rules for Investment Funds in Market Indexes
- Income tax rate considered credited and paid on 1 January 2022 to shareholders of closed-end funds and FIPs not qualified as investment entities
- Inapplicability of the taxation regime for investments in closed-end funds
- Real estate investment funds
- Updating of assets and rights held abroad by the individual
- Revocation of tax benefits
- PIS and COFINS—Special regimes
Other items concerning individual income tax measures are generally unchanged.
Read an August 2021 report (Portuguese) prepared by the KPMG member firm
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