Bill moves forward for presidential approval

Understand the changes in the new legislation, which take effect in 2026.

The bill, proposed by the Federal Government, introduces changes to the Personal Income Tax legislation, creating monthly and annual taxation for high-income earners.

According to the bill approved by the Senate, profits and dividends paid to individuals exceeding BRL 50,000 per month will be subject to a 10% withholding income tax.

In addition, a minimum tax on high incomes has been established, applicable to those earning more than BRL 600,000 annually.

It is worth noting that the bill created a non-incidence window for IRPF (Personal Income Tax) on dividends related to profits earned up to the 2025 fiscal year, provided that their distribution is approved by December 31, 2025.

For these cases, the law allows payment, credit, use, or delivery to occur until 2028.

Furthermore, to avoid double taxation — when both the company and the partner would pay tax on the same income — the bill provides a reducer (Article 16-B). This mechanism ensures that the combined tax rates of the company (IRPJ + CSLL) and the partner do not exceed the legal limit, preventing double taxation.

Summary

Dividends above BRL 50,000/month
10% withholding tax

Annual income above BRL 600,000
Progressive minimum tax up to 10

Non-incidence for dividends approved until 12/31/2025 and paid until 2028

Reducer
Prevents double taxation between company and partner

The bill, now approved by the Federal Senate, has been sent for presidential approval, which should occur in the coming days.