Overview

• Lawmakers in the Chamber of Deputies approved the income‑tax change unanimously, moving the bill to the Senate.
• The government projects forfeiting about R$25.8 billion annually from the higher exemption and raising roughly R$34.12 billion from taxing dividends and similar income.
• The design focuses relief on earners up to R$5,000 a month, with officials citing 141,000 high‑income recipients newly taxed so that about 10 million people stop paying IR.
• A related provisional measure that raises taxes on betting platforms, large fintechs and certain financial instruments faces strong lobbying and could be struck down or expire next week.
• PT leaders are mobilizing to claim political credit for the change as public companies and some analysts warn dividend taxation could deter foreign capital and risk outflows.