Overview

• The Chamber approved the measure 493–0, granting full income tax exemption up to R$5,000 per month and a graded discount for earnings up to R$7,350.
• To finance the change, the bill creates a progressive minimum tax of up to 10% on annual incomes above R$600,000, which the government says will reach roughly 141,000 high‑income taxpayers.
• The text also taxes profits and dividends remitted abroad above R$50,000 per month, with distributions approved through 31 December 2025 excluded under a transition rule.
• Fiscal impact estimates vary from about R$25.8 billion to R$31.3 billion in 2026, while the report projects R$34.1 billion in compensating revenue and includes safeguards for state and municipal transfers and an anti–double taxation mechanism.
• The government estimates around 15 million people will benefit—about 10 million becoming exempt and 5 million paying less—and the bill requires the Executive to propose an annual policy for updating the IR table within a year.