The Senate unanimously approved this Wednesday (5) the project that expands the Income Tax (IR) exemption range for those earning up to R$5,000 per month.
The proposal also provides for a discount on IR for taxpayers with income between R$5,000 and R$7,350 per month, maintaining the progressive table for incomes above this amount.
To compensate for the reduction in revenue, the text creates a progressive rate of up to 10% for people who receive more than R$600,000 per year.
Continues after advertising
The project, which had already been unanimously approved in the Chamber of Deputies, will go to President Luiz Inácio Lula da Silva for approval, with the expectation of coming into force in January 2026.
The Senate rapporteur, Renan Calheiros (MDB-AL), chose not to change the content approved in the Chamber to avoid delays in processing.
He recognized the need for improvements, especially in compensation, but defended quick approval so as not to frustrate the population and guarantee the measure’s implementation this year.
The Minister of Finance, Fernando Haddad, stated that around 25 million Brazilians will benefit, no longer paying or paying less Income Tax.
The proposal also provides for minimum taxation for high income, with a progressive rate that can reach 10% for income up to R$1.2 million per year, in addition to taxation on profits and dividends from 2026.
If sanctioned, the new rule will impact the income tax declaration made in 2027.
Continues after advertising
Senators also defend the need to update the progressive table to avoid future lags, in addition to measures to compensate for losses in states and municipalities, such as taxation of online betting houses.
