Tax reform: Guedes reiterates its willingness to tax dividends at 20%

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The minister said that he is listening to the private sector about the tax reform proposal and indicated that some points could be changed or withdrawn

The Minister of Economy, Paulo Guedes, said on Wednesday that the government is determined to be bold in its tax reform, favoring companies and workers, but reiterated its willingness to tax the dividends distributed to individuals by 20% in order to increase the taxation of the “super-rich”.

At a press conference to comment on the June tax revenue, the minister said that his team is listening to the private sector about his tax reform proposal and indicated that some points in the original version sent to Congress could be changed or withdrawn.

“But the essential thing we will do, which is to tax interest and dividends, reduce taxation for 31 million Brazilians, salaried taxpayers, and exempt self-employed professionals, who are called pejotinhas,” said Guedes, adding that the government does not want to tax doctors and dentists, but the big offices and the super-rich.

“We are precisely wanting to lower (company taxation) from 34% for some sectors to 21.5%. And we also want to raise the tax on dividends from zero to 20%,” added the minister.

For Guedes, the record level of collection reached by the country in the first semester is sustainable and independent of the economic growth ahead.

Revenue data showed that the collection grew 24.5% in real terms in the first half of the year, to 881.966 billion reais, the highest value in the series.

“What we are going to do is just take a part of this increase in collection and transform it into a reduction in rates and simplification of taxes, as we always promised,” said the minister.

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palheta smll Tax reform: Guedes reiterates its willingness to tax dividends at 20%

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