What are the main changes expected in the taxation of investments in Brazil?

Among the main changes in taxation is the end of the Income Tax exemption on various investments, which will now have a reduced rate of 5%. Investments that had a regressive tax between 15% and 22.5% will be subject to a single rate of 17.5%.

Provisional measure MP 1,303/2025, which deals with the taxation of investments and virtual assets in Brazil, has been in force since June 11, 2025, but still needs to be voted on by the Chamber of Deputies and the Federal Senate to become law.

Although it is already in force, the deadline for this vote to take place is 60 days, and it can be extended for the same period, totaling 120 days. Therefore, MP 1,303/2025 must be voted on by the end of August, with the possibility of extension until October, if there is an extension.

• Main highlights

-End of the regressive table; general unification of IR at 17.5% for almost all investments.

-Previously exempt products (LCI, LCA, CRI, CRA, FIIs, incentivized debentures, crypto) will now be subject to taxation, albeit reduced (IR of 5% or 17.5%).

-Significant change in taxation on JCP, jumping from 15% to 20% directly involved in income.

-Loss offsetting between different types of investments is now permitted – previously, limited to the same category.

-Taxation abroad becomes annual and mandatory, even without repatriation.

🔄 Practical application

-As of January 1, 2026, income from new issues will already be subject to the MP rates.

-Investments acquired before 2026 will remain under the old regime until maturity.

-The provisional measure is still pending conversion into law by Congress; it has currently been in force since June 11, 2025, with effects starting in 2026.

• In summary:

See below a comparative table with the main changes in the payment of investment taxes, before and after provisional measure 1,303/2025, valid for issues starting January 1, 2026:

🧾 Table: Taxation Changes Before and After Provisional Measure (MP) 1,303/2025

Type of Investment / Income	Before (until 2025)	After MP (from 2026)
Fixed income (CDB, Treasury Bonds, LC, debentures)	Regressive IR: 22.5% (≤6 months) → 15% (>2 years)	Fixed IR of 17.5%
LCI, LCA, CRI, CRA, incentivized debentures	Tax-exempt	IR of 5% on income from securities issued from 2026 onward
Interest on Equity (JCP)	Withholding tax of 15%	Increased to 20%
Stocks – capital gains (stock exchange sales)	15%, exempt up to R$20k/month	17.5%, new exemption limit: R$60k per quarter
Day trading (stocks and derivatives)	20%	17.5%
Investment funds (fixed income, multimarket)	Regressive IR: 22.5% → 15%; semiannual “come-cotas”	Unified IR of 17.5%; losses can offset across fund classes
Real Estate Funds (REIT/FII/Fiagro)	Income exempt; 20% capital gain tax	Income = 5% IR; Capital gain = 17.5%
Crypto assets	Exempt up to R$35k/month; 30% above	Flat IR of 17.5%, no exemption limit
Offshore investments / foreign income	15% (when repatriated)	Annual IR of 17.5%, even if not repatriated
Securities lending (e.g. stock lending)	Taxed as per operation type	Fixed IR of 17.5% on income
Sports betting (bets)	12% on gross revenue	18% on Gross Gaming Revenue (GGR)
CSLL – Financial institutions & fintechs	Standard CSLL of 9%	Now between 15% and 20%, depending on institution type