BrazilCham member FIUS has published a comprehensive study on one of the most impactful legislative developments currently underway in Brazil: the proposed reform of income taxation, approved by the Federal Senate under Bill No. 1,087/2025.

The report, “Income Tax Reform: Dividend Taxation and Risks on Retained Earnings,” provides a detailed examination of the new rules affecting individual income tax (IRPF), the introduction of a 10% withholding tax on dividends, and the implications for companies, shareholders, and foreign investors. FIUS also outlines the legal debates surrounding the reform, including concerns related to constitutionality, legal certainty, and potential business impacts.

The study offers practical guidance on next steps for companies, including strategies to safeguard retained earnings, evaluate judicial alternatives, and navigate the upcoming changes with greater clarity.

We encourage our readers to explore the full analysis in the PDF (click here), which provides valuable insights and expert perspectives on this evolving legislation.

For additional information, FIUS’s tax team remains available to assist companies and stakeholders as the reform advances toward presidential approval.