Ebook | Income Tax Reform: Dividend Taxation and Risks on Retained Earnings

Income Tax Reform: Dividend Taxation and Risks on Retained Earnings The Federal Senate approved the main text of Bill No. 1,087/2025, which reforms income taxation in Brazil and represents one of the federal government’s main economic priorities. The bill now moves to Presidential approval, with expectations of swift promulgation and effectiveness starting January 1, 2026, if enacted into law before the end of this year. The approved text significantly amends the Individual Income Tax (IRPF) rules and introduces a minimum income taxation regime, in addition to establishing a 10% withholding income tax (WHT) on dividends paid by Brazilian companies to individuals and non-resident shareholders. Access the e-book and learn more.