Over the past few months, the Brazilian government has been
increasing several taxes in order to restore the Country's
finances. These measures have impacted considerably the tax burden
in Brazil. Find below the main highlights on the changes made:
Capital Gains Tax – Individuals: Tax
rates applicable on capital gains obtained by Brazilian individuals
will be increased from 15% to up to 30% from January 1, 2016
(provided Provisional Presidential Decree 692/2015 is passed into
law in 2015). Foreign investors – except when established in
tax havens– may also be affected by the tax increase in
several situations. The new capital gain tax brackets will be the
following: (i) up to BRL 1,000,000.00 – 15%; (ii) BRL
1,000,000.01 to BRL 5,000,000.00 – 20%; (iii) BRL
5,000,000.01 to BRL 20,000,000.00 – 25%; and (iv) from BRL
20,000,000.01 – 30%.
