Overview
- Senators granted final approval by symbolic vote after a 493–0 passage in the Chamber of Deputies.
- About 25 million taxpayers will pay less or no income tax, with a reduced rate band covering monthly earnings up to 7,350 reais.
- The reform introduces a 10% minimum effective tax for high earners above 600,000 reais a year or 50,000 reais a month.
- Dividend income will count toward the levy, which the Finance Ministry says will affect roughly 0.13% of taxpayers.
- Lawmakers rejected Senate amendments to avoid returning the bill to the lower house, and officials project savings near an extra month’s pay per beneficiary each year.