New rule establishes a 10% income tax rate withheld at source on monthly dividends above R$50,000 paid to individuals, or R$600,000 per year; measure preserves exemption for profits calculated until December 31st
The minister of the Institutional Relations Secretariat, Gleisi Hoffmann (PT), criticized an alleged advance of dividends that companies were making to avoid taxation that will come into force from 2026.
“It is an indecent maneuver, to avoid charging income tax on dividends that are still exempt and will have to pay up to 10% from next year to exempt those who earn up to R$5,000”, he stated in a publication on the X network this Tuesday (2).
The new rule establishes a 10% income tax rate withheld at source on monthly dividends above R$50,000 paid to individuals, or R$600,000 per year. The measure preserves the exemption for profits calculated until December 31, 2025.
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The proposal under discussion in the Senate’s Economic Affairs Committee (CAE), which aims to extend the deadline for approving distributions until April 2026, has not yet been voted on, maintaining urgency for companies.
