Haddad signals that dividend tax deadline must be maintained | Brazil

The calculation of dividends until the end of this year serves to circumvent the taxation of dividends provided for in the IR reform sanctioned by President Luiz Inácio Lula da Silva, with the potential to reduce federal revenues next year, when the budgetary target is a surplus of 0.25% of gross domestic product (GDP).

The movement of companies occurs because the text, already sanctioned, provides an exemption for dividends whose distribution is approved until the end of 2025, even if the payment occurs between 2026 and 2028. Some companies claim that the deadline is short and request a postponement.

“The majority of companies are resolving the problems and I have consulted (law) firms who say they have no difficulty guiding companies,” the minister responded to journalists, when asked about a possible postponement.

The minister also confirmed that the selective tax regulation, provided for in the tax reform, will be submitted to Congress at the beginning of 2026. Apart from this, according to him, there are no tax proposals in the pipeline of the government to be submitted to Parliament next year.

During the coffee, the minister also commented on the end of the 6 x 1 scale and stressed that President Lula was in favor of this thesis, but declared that the government did not want it to be a simple initiative of the Executive, but a joint idea with the Legislative.

“This could become a campaign theme (for the 2026 elections). Let’s see how the political forces will manifest themselves,” he said.