Brazil New PIC Rules Demand Proactive Approach

The country's new government is moving quickly to tighten the rules around Private Investment Companies. Read on to find out why it's likely to make life more difficult for investors using these vehicles to manage offshore assets.

Brazil's new government has made rapid progress in its desired aim to change a raft of the country's tax laws and regulation, and now the country's congress is studying reforms to the regime that governs PICs.

PICs – the acronym for Private Investment Companies – are the investment vehicles that many wealthy Brazilians use to manage offshore assets. The structure offers various tax efficiencies and are simple both to establish and maintain, being a form of wealth management that is light on regulation, but authorities are now looking to make changes to the rules to tighten both reporting and increase tax rates on these PICs.