Congress Opens Path to Permanent IR Exemption as Chamber Sends Fiscal Package to Senate

Overview

• The Chamber approved PL 458/2021, bundling spending controls and tax measures with the new Rearp regime, and sent the text to the Senate after a vote of roughly 279–137.
• Rearp lets taxpayers update asset values by paying 4% on the valuation gap and regularize lawful undeclared assets with a 15% income tax plus a 15% fine, with lock-up periods for sales of updated assets.
• The package tightens PIS/Cofins credit compensations, limits pension compensations (Comprev), caps Atestmed benefits at 30 days, and folds the Pé-de-Meia program into the education floor while removing its R$20 billion cap.
• Congress separately approved PLN 1/2025 to allow an indefinite IR exemption for earners up to R$5,000 and to keep 2025 budget blocking calibrated to the lower bound of the fiscal target, while the Senate readies a report on the IR bill for next week.
• The Chamber fast-tracked the ‘devedor contumaz’ bill by 336–50, enabling plenary voting on sanctions such as loss of tax benefits and bidding bans, with officials citing around 1,200 CNPJs owing R$200 billion and potential recovery of up to R$30 billion.