Overview

• Lira’s report grants full IRPF exemption up to R$5,000 a month and applies a transitional discount to incomes up to about R$7,350 starting in 2026.
• The offset package includes a minimum 10% tax on very high earners, beginning to phase in above R$600,000 a year and reaching 10% from R$1.2 million, with credits to cap combined IRPJ, CSLL and IRPF at 34%.
• The text taxes dividend remittances abroad at 10% on monthly amounts above R$50,000, with payments through December 2025 excluded during a transition and carve-outs for sovereign and pension entities.
• Fiscal impact estimates range from R$25.8 billion in 2026 to roughly R$30 billion annually, and Lira says the latest calibration erases earlier surpluses and leaves only a small gap in 2028.
• While the exemption has broad support, compensation sources remain unsettled as an amendment to add a 5% CSLL surcharge on big banks draws resistance, leaders float splitting the vote, and the government seeks Senate approval by December to reach about 10 million people.