This week, the Ministry of Finance published a manual explaining how a 10% withholding will be applied to profits and dividends above R$50,000 distributed by companies to the same person residing in Brazil and on any amount remitted to the natural or legal person abroad. This taxation, created in conjunction with the law that increased the income tax (IR) exemption for those who receive up to R$5,000 per month, raises questions from tax experts and businesses, which are looking for ways to remunerate their shareholders without having to withhold income tax from January 2026.
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