Federal Revenue data show an increase of R$ 1.60 billion in 2023 and R$ 2.08 billion in 2024; proposal changes the collection of income tax from companies and legal entities and provides for taxation on dividends
O federal government projects an increase of R$ 2.47 billion in tax collection in 2022 with the approval of the tax reform by Congress. Data from IRS released this Monday, 12, show that the estimate will rise to BRL 1.60 billion in 2023 and BRL 2.08 billion in 2024, totaling BRL 6.15 billion over the next three years. The proposal for changes in the tax system was delivered in person by the Minister of Economy, Paulo Guedes, to the president of the Chamber, Arthur Lira (PP-AL), at the end of June. The text provides for cuts in the Income tax for companies and for individuals, while determining a 20% tax on the distribution of profits and dividends. The proposal was met with criticism by businessmen and economists, who stated that the changes will impact the increase in the tax burden. Members of the economic team also pointed out errors in the text. According to the tax authorities, the proposals will have a neutral effect, that is, the increase in part of the taxes will be offset by the reduction of others.
The extra amount foreseen for 2022 is driven by the estimate of collecting R$ 19.42 billion from dividends and the extinction of Interest on Own Capital (JCP). For 2023, the projection is to add another BRL 57.68 billion and BRL 61.04 billion in 2023. The reduction in income tax for companies should impact the fall of BRL 18.52 billion in 2022, BRL 39.25 billion in 2023 and R$ 41.53 billion in 2024. The economic team proposed two cuts of 2.5 percentage points in the taxation of Legal Entities (IRPJ) in 2022 and 2023, but Guedes has already stated that the reduction could be of 10 percentage points in 2022 if the government withdraws subsidies from companies and economic sectors. The expansion of the Income Tax for Individuals (IRPF) base to BRL 2.5 thousand will impact the waiver of BRL 13.50 billion in 2022, BRL 14.46 billion in 2023 and BRL 15.44 billion in 2024. The data from the Federal Revenue also show that the updating of property values will increase the collection by R$ 880 million next year, and reduce it by R$ 2.45 billion in 2023 and R$ 2.03 billion in 2024. The forecast for the collection of Income Tax in the financial market points to an increase of BRL 14.19 billion next year, but shows accommodation to BRL 80 million in 2023, and BRL 50 million in 2024.