This Monday (28), President Luiz Inácio Lula da Silva (Workers’ Party) signed a Provisional Measure (known as MP in Portuguese) to change the taxation of exclusive investment funds used by the super-rich to save money. The MP equals taxation of these funds to those of other investment funds offered by banks and financial brokerage.
Through the MP, between 15% and 20% of the income from exclusive funds will be levied as a tax twice a year. The taxation follows the “quota-eater” system.
Before the measure, the taxation of this kind of income only happened with the reclamation of the money invested.
The government estimates that 24 billion reais will be collected between 2023 and 2026.
“We will tax rich people, include the poorest people in the country’s budget and guarantee dignity to Brazilian families”, Lula posted on social media after signing the measure.
Lula also presented to Congress a bill to tax Brazilian citizens who receive income from offshore companies located in tax havens.
The taxation of these incomes was part of the MP that granted an extra increase to the minimum wage. However, this excerpt of the MP was not voted on and lost its validity. The government then sent an urgent bill on the same matter.
According to the government, Brazilian investors have over 1 trillion reais invested abroad. The taxation of these sums can generate to the State about 7,05 billion reais in 2024; 6,75 billion reais in 2025; and 7,13 billion reais in 2026.
In Brazil, the taxation varies from 0% to 22.5% depending on the income invested abroad.
On this Monday, too, Lula sanctioned a law establishing a policy to value the salary range, plus another that updates the Income Tax collection table.
“I have just sanctioned another campaign commitment: a law establishing the policy to permanently value the minimum wage and updating the income tax exemption table. These were years without a real increase in the minimum wage and without valuing workers. An important step forward, which was given with the support of Congress”, he wrote.
Edited by: Nadini Lopes and Thalita Pires