By Felipe Pinheiro Auge
Approved by the Senate and sent for presidential sanction
The Federal Senate approved last night (November 5, 2025) Bill No. 1,087/2025, which establishes taxation on profits and dividends and modifies several rules regarding the Individual Income Tax (IRPF). With the approval, the bill now moves on to presidential sanction.
The project underwent no significant changes in the Senate and will end the exemption regime in force since 1996, establishing new taxation rules. Among the main points are:
- Profits and dividends exceeding R$ 50,000 per month, paid by the same company to the same partner residing in Brazil, will be subject to a monthly withholding income tax (IRRF) of 10%.
- In the Annual Income Tax Return (IRPF), annual income exceeding R$ 600,000 will be subject to a minimum income tax, with a gradual rate that may reach up to 10% for those earning more than R$ 1.2 million.
- The text also provides transitional rules for accumulated profits, but maintains restrictions on their applicability, such as the requirement that distribution decisions be made still in 2025 in order to preserve the exemption.
Legislative Process and Senate Commitment
The vote took place at an unusually fast pace, given the deadline for implementing the new rules starting in 2026. During the discussions, senators acknowledged flaws in the approved text and committed to correcting them through a separate bill.
Next Steps
The bill now awaits presidential sanction, which must occur within 15 business days (ending on November 26, 2025).
It is recommended to exercise special attention and prior tax planning before the new rules come into full effect.
