Deputies approve reduction of the taxation of profits and dividends to 15% – Prime Time Zone


Basic text voted this Wednesday determined taxation of 20%; Chamber debates highlights of the project that changes Income Tax rules for companies and individuals

Joka Madruga – Estadão ContentHighlight changes taxation in the distribution of profits and dividends of companies

A Chamber of Deputies approved on Thursday, 2, the reduction from 20% to 15% the rate of Income tax on profits and dividends. The highlight, presented by the Republicans party, was approved with 319 votes in favor and 140 against. The deputies returned to the plenary to debate the highlights of the text that changes Income Tax rules for companies and legal entities after the approval on the eve of the substitute for the rapporteur, deputy Celso Sabino (PSDB-PA). The basic text was approved this Wednesday night, 1st, after several meetings of parliamentary leaders and threats of obstruction by opposition parties. Taxation should not affect micro and small companies integrated into the Simples Nacional and enterprises taxed on the presumed profit with sales of up to R$ 4.8 million. Companies that participate in holdings will also be excluded from taxation. The approved report also exempts equity investment funds. In the previous version, the funds would be taxed at 5.88%. The Corporate Income Tax (IRPJ) will go from 15% to 8%, compared to a reduction to 6.5% provided for in the rapporteur’s first text. The Social Contribution on Net Income (CSLL) will decrease 0.5 percentage point in two stages, subject to the reduction of tax deductions that will increase collection. After the end of the deductions, the total will be 1 percentage point less, going from 9% to 8% in the general case. Banks will go from 20% to 19%; and other financial institutions, from 15% to 14%.

The Speaker of the Chamber, Deputy Arthur Lira (PP-AL), stated that the project that changes Income Tax rules for companies and individuals was “built with a lot of debate between the government and the opposition”. “Yesterday, when many were doomed to failure, deputies and deputies approved the basic text that changes the Income Tax rules”, said Lira. “The policy is made by gestures, words, conversations and, above all, respect for the signed agreements.” The proposal was approved with a score of 398 votes in favor and 77 against. Deputies must complete the proceedings this Thursday with the vote on the highlights presented by the parties. After this phase, the document will be sent to the Senate. The text maintained the broadening of the tax exemption range for individuals, which goes from R$1,903.98 to R$2,500.00. As a result, around 16 million Brazilians, half of the total number of deponents, will be exempt. Deputies also approved the maintenance of the simplified discount in the annual adjustment declaration, one of the main points of clashes between the government and opposition. The agreement left the discount of 20% of taxable income, limited to R$ 16,754.34, and replaces all allowed deductions, such as expenses with health, education and dependents. “In this substitute that we have presented, we will keep the option for the simplified declaration in the Individual Income Tax declaration unlimited. We maintained the end of interest on capital in Brazil, we maintained the taxation of profits and dividends as it was in the previous substitute”, said the rapporteur.