Brasilia – The Brazilian president, Luiz Inácio Lula da Silva, signed a provisional regulation that modifies the taxation of exclusive investment funds, or the “super-rich”, an initiative that provides for an increase in collection, according to an official statement.
In addition, the president sent to Congress a bill that “taxes on the capital of Brazilian residents applied in tax havens”, in offshores and trusts (when the owner of the assets passes the assets to a third-party administrator), according to the note issued by the Planalto Palace.
Both initiatives will be sent to Congress for evaluation.
In the first case, parliamentarians have up to 120 days to approve it, or otherwise, the rule will lose effect. The measure on the “super-rich” funds, which are generally individual, provides for “a charge of 15 to 22.5%” on the returns, the statement indicates.
“The collection will be made twice a year, unlike what currently happens, in which the tax (income tax) is made only in the redemption,” he explains.
Until now, exclusive funds had this advantage over others with advance taxes, since the capital continued to yield in the investor’s portfolio. The government estimates that some 2,500 Brazilians have resources in these funds, for some 756.8 billion reais (151.36 billion dollars), 12.3% of the funds in the country.
According to the government’s description, the exclusive funds require a minimum investment of 10 million reais (about 2 million dollars), with a maintenance cost of up to 150,000 reais per year.
With this measure, the government hopes to collect some 24 billion reais (about 4.8 billion dollars) until 2026.
Thus, the public coffers will be strengthened in pursuit of the Executive’s objective of reducing the fiscal deficit to zero next year.
In 2022, a total of 120,000 new millionaires (with more than 1 million dollars) emerged in Brazil, bringing the total to 413,000, according to a report by UBS bank and Credit Suisse released in the middle of this month.
Meanwhile, the bill for offshores and trusts proposes annual taxation with progressive rates from 0 to 25% of the returns on capital invested abroad, indicates the Presidency. Currently, this capital invested outside the country is only taxed when it is redeemed and remitted to Brazil.
Source: Ambito
