Overview

• The Chamber of Deputies approved the government bill unanimously among those present, keeping full exemption up to R$5,000 a month and extending partial relief to R$7,350.
• Rapporteur Arthur Lira expanded the discount band to R$7,350 and inserted a requirement for the Executive to propose, within one year, a policy for regularly updating the IRPF table.
• To offset lost revenue, the text creates a minimum tax on very high incomes above R$600,000 a year with a progressive rate up to 10% from R$1.2 million, and adds 10% withholding on large dividends.
• The Finance Ministry says roughly 140–141 thousand high‑income taxpayers would be affected, while about 15–16 million people would benefit, including around 10 million who would stop paying IR.
• Fiscal estimates point to a 2026 revenue loss of roughly R$25.8–31.3 billion, with compensatory measures projected to raise about R$34.1 billion; if the Senate approves and the president sanctions by year‑end, the new rules take effect for 2026 income.