Among those for those who earn up to R $ 5,000 reais is the creation of a 10% tax in the remittances of dividends, both for individuals and legal entities abroad. However, this proposed change has generated questions.
The Brazilian Association of Open Companies (Abrasca), an entity that brings together nearly 500 companies listed in B3, understands that in this regard the project should only stick to individuals. The entity supports the IR project as a whole, but understands that this new taxation should not affect the shipments made by companies.
To explain his theses, he promoted a debate in Brasilia, on Thursday night (7), with the presence of FGV Finance Professor Joelson Sampaio. He warned that it is necessary to be more cautious with the changes in taxation of legal entities.
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Sampaio acknowledged that public discussion about tax distortions in Brazil is a topic that needs to be treated. However, he commented that it is important to separate these discussions. “We need to reduce distortions, but bring this tax to the legal entity, as was done in the project and with little debate, can bring risks to Brazil and public policy, which is noble at the end,” said the professor.
According to the expert, the idea is to improve the discussion and, from this, separate the purpose of the bill, which is to discuss a more social taxation from the social point of view to the individual.
“From there, it is complicated to open a discussion also for legal entity, because the subject is quite complex. When you negatively affect a company, you also affect the individual, because this company employs, generates income, affects GDP,” he warned.
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To contextualize the impact of the project under discussion in Congress, Sampaio presented the example of a 1996 proposal, which was exactly the opposite. It brought the income tax exemption to dividends.
The law of the time, according to the FGV professor, provided an increase in foreign direct investment to Brazil, as well as providing better profitability companies, better results, better market perception, better value and also more foreign capital.
According to the teacher, the effect was good for the economy. “It’s the type of investment that goes to the real economy, that economy that generates jobs, generates income, makes GDP grow. It’s not just speculative capital,” Sampaio said.
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He said the fear is of a reverse effect now, that is, that taxation brings a higher risk perception to these investors. “Then, he begins to internalize in the account that, by putting money in Brazil, from the moment he needs to make a remittance of profit or dividend, and everything Brazil already charges, still has to pay another 10%,” he compared. For Sampaio, this will surely enter the investor’s account.
Abrasca even talked to Deputy Arthur Lira before the vote of the opinion on the special committee, but the priority points of the entity were not attended. Now, Abrasca will battle for the exclusion of the taxation of companies when the proposal arrives at the House Plenary and then in the Senate.
According to the entity, there is a coalition of more than 20 parliamentary fronts working to present suggestions of amendments and try to bring the rapporteur to an expanded meeting, with greater participation of deputies.
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It makes sense to discuss this issue of income tax for dividends from legal entities, says the teacher. “The point is to separate matters, because today, as it is placed, you have risks that can threaten the benefits of the government’s own reasons exposure in terms of public policy that it intends as a bill,” he said.
