Overview

• The Arthur Lira report keeps full IR exemption up to R$5,000, adds a relief band to roughly R$7,350, and imposes a minimum 10% tax on annual incomes above R$1.2 million with a progressive ramp starting at R$600,000.
• The bill also withholds 10% on profits and dividends sent abroad above R$50,000 per month and sets automatic transfers to states and municipalities to neutralize losses.
• Finance estimates indicate tens of billions of reais in annual foregone revenue, with government figures citing roughly 10 million beneficiaries and evolving projections as Lira widened the relief band.
• Key pay‑for options remain in dispute, including an amendment to lift the CSLL by 5 percentage points on large financial institutions, while leaders weigh whether to separate the offsets from the core exemption in the floor vote.
• The committee vote on MP 1.303 was delayed to Thursday as relator Carlos Zarattini weighs concessions on taxing LCI and LCA, while items seen as advancing include higher levies on bets, a CSLL hike for fintechs, and taxation of virtual assets before the MP’s Oct. 8 expiry.