Overview

• The Chamber of Deputies approved the income‑tax bill unanimously, sending the measure to the Senate for consideration.
• Monthly wages up to R$5,000 would be fully exempt and those earning up to about R$7,350 would pay less under the targeted design.
• The government estimates a revenue loss near R$25.8 billion and projects roughly R$34.12 billion in new receipts from higher‑income and previously untaxed streams, notably dividends.
• Officials and analysts highlight that about 141,000 high‑income taxpayers would start paying to allow roughly 10 million Brazilians to stop paying income tax.
• A complementary provisional measure to tax betting platforms, large fintechs and certain tax‑favored instruments faces strong resistance in the Senate, raising doubts about the durability of the compensation plan and the ultimate fiscal balance.