Executive Secretary of Finance states that the text “is ready” and that the decision to forward it to Congress at the end of this year belongs to Lula and Haddad
The executive secretary of Finance, Dario Durigan, said this Tuesday (Dec 10, 2024) that the president’s government (PT) will forward the bill that deals with the IRPF (Individual Income Tax) to those who receive up to R$5,000 per month in 2024. The initiative will take place less than two weeks before the legislative recess, which begins on December 23rd.
“The forecast is that we will send it this year. This is the president’s decision [Lula] with the minister [Fernando] Haddad, but the project is ready”he declared in an interview with journalists.
Durigan spoke about the topic after a lunch promoted by the (Parliamentary Entrepreneurship Front). Number 2 of the Ministry of Finance that the measure has guaranteed compensation.
“Any discussion about the exemption of the R$5,000 that has the impact of waiver will be done in every way with compensation”these.
The intention, however, is only in 2025. According to the Minister (Finance), the new IRPF exemption will be paid for by taxing those who receive more than R$50,000 monthly. The changes will take place in 2026, if approved by Congress.
There will be a minimum rate of 10% for this group in the IRPF, which will apply to any type of financial gain such as profit, dividends, rent, bonuses and others. Currently, the rate is 27.50% for earnings above R$4,664.68 per month, but the government will now consider types of income currently exempt.
On December 2, Dario Durigan also indicated that the bill that the government will send to Congress on the subject will have changes to the rules for paying dividends outside the country. “We have been debating the issue of paying dividends abroad so that there is no incentive to change tax domicile, but this will be presented when the bill is presented to Congress”these.
The announcement of the new IRPF exemption range together with the tax package caused a negative reaction in the financial market. During the FPE lunch, Durigan stated that the market “and a concrete actor in the life of Brazil”from an economic point of view.
