Introduction of dividends taxation
On November 26, 2025, Law No. 15,270/2025, which deals with income tax reform, was enacted without vetoes by the President.
This is the conversion of Bill 1,087/25, with the objective of (i) reducing to zero the personal income tax (“IRPF”) for those earning up to R$ 5,000.00 per month, (ii) offering a discount on the IRPF for those earning up to R$ 7,350.00 per month, (iii) covering this tax waiver with the reintroduction of income tax on the distribution of dividends, including to non-residents, combined with the creation of a minimum personal income tax (“IRPFM”) for those earning above R$ 600,000.00 annually.
The new Law will enter into force on the date of publication, with effects from January 1, 2026.
The main points of the law are:
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Income Tax Reduction for the Lower Tax Brackets: Reduces the personal income tax (“IRPF”) to zero for those earning up to R$ 5,000.00 per month and offers an IRPF discount for those earning up to R$ 7,350.00 per month.
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Income Tax on dividends paid to individuals: Starting in January 2026, the payment, crediting, use, or delivery of profits or dividends by the same legal entity to the same individual residing in Brazil in an amount exceeding R$ 50,000.00 in the same month is subject to withholding tax at a rate of 10% on the total amount paid, credited, or delivered, without any deduction. This does not apply to dividend payments to legal entities residing in Brazil. Profits and dividends approved up to 12/2025 will not be subject to withholding tax, provided that the payment, crediting, use, or delivery occurs under the terms originally stipulated in the approval act.
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Annual Minimal Individual Income Tax (IRPFM): Starting in 2026, individuals who receive total income exceeding R$ 600,000.00 per year will be subject to the "Minimum Individual Income Tax (IRPFM)". The income tax rate will be 10% for incomes equal to or greater than R$ 1,200,000.00. For incomes between R$ 600,000.00 and R$ 1,200,000.00, the rate will increase linearly from zero to 10%, according to the formula stipulated by law.
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Withholding Income Tax (IRRF) on dividends paid to non-residents: profits and dividends paid to residents abroad (whether individuals or legal entities) will now be subject to a 10% withholding income tax.
Brazilian Federal Revenue Service expands rules for crypto assets and implements new rules for declaring crypto assets in 2026.
The Brazilian Federal Revenue Service has released Normative Instruction RFB No. 2,291/2025, which redefines and expands the obligations for declaring cryptocurrency transactions in Brazil. This regulation comes a week after the Central Bank (BC) included digital currency exchanges, such as Bitcoin, in the same regulatory framework applied to traditional financial institutions.
The new regulation updates the requirements established since 2019, aligns the country with international transparency standards set by the OECD and the G20, and introduces a standardized form for declarations: the Cryptoasset Declaration (DeCripto).
Among the most relevant changes is the mandatory requirement for foreign exchanges operating in Brazil to submit the same declarations required of national operators, something that was not foreseen in the previous regulation.
With the new regulation, Brazil will implement the Crypto-Asset Reporting Framework (CARF), an international protocol created by the OECD in 2022 to standardize the instant exchange of information on cryptocurrency transactions. CARF works similarly to the automated data interchange system already used for traditional financial transactions. The idea is to create a global network for traceability of digital currency operations.
Operators will be required to report information such as: Identification of reportable individuals; Cryptocurrency used in the transaction; Number of transactions per type of transaction; Total value, in reais (Brazilian currency), of each transaction; Total quantity of cryptocurrencies per type of transaction.
