Overview

• The CAE approved the measure in caráter terminativo, so it advances to the Chamber of Deputies unless senators request a plenary review.
• The text creates a minimum personal income tax from January 2026 for annual incomes above R$600,000, with rates up to 10% and a ceiling effect above R$1.2 million.
• The proposal keeps profits and dividends exempt up to R$50,000 per month for residents and applies a 10% withholding on amounts above that and on dividends remitted abroad.
• The discount phase-out applies just above the new exemption threshold, with outlets reporting the upper limit as either R$7,000 or R$7,350.
• The move intensifies the rivalry between CAE rapporteur Renan Calheiros and Chamber relator Arthur Lira, as the government-backed Chamber bill on the same topic is set for a plenary vote on October 1.