Overview

• Arthur Lira’s text grants full exemption to earners up to R$5,000 per month and a partial discount for those making up to R$7,350.
• Roughly 16 million people could benefit starting in 2026, compared with today’s full exemption threshold of about R$3,036 per month.
• Compensation includes a new progressive levy on annual incomes above R$600,000 that rises to 10% for earnings over R$1.2 million, with dividends distributed through December 2025 remaining untaxed.
• Parties filed more than 50 amendments, including proposals to raise banks’ CSLL, while opposition lawmakers have floated delaying the compensatory measures to 2027 or expanding the exemption to R$10,000.
• If approved in the Chamber, the bill moves to the Senate, where an alternative advanced by Renan Calheiros is on the table, with a stated goal of final approval by December 31 for application in 2026 returns.