The government of Brazil announced on Monday a tax of 15% to 20% for the funds of the so-called “super-rich” and a bill to tax the capital of Brazilian residents abroad.
Both measures were sent to Congress for evaluation, according to the administration of President Luiz Inácio Lula da Silva. The first establishes the collection, twice a year, of a tax on the returns of exclusive funds, which have a single owner and require a minimum investment of 10 million reais (US$ 2 million or 1.90 million euros). and have an annual maintenance cost of up to 150,000 reais (US$31,000).
Currently, the taxation of these closed funds occurs only at the time of redemption of the securities. Lula’s government, in power since January 1, expects to collect around 24 billion reais with this new tax (US$4.92 billion today’s exchange rate – or about 4.548 billion euros) between 2023 and 2026.
On the other hand, the administration of the progressive leader included a reduction, with a taxation of 10% in front of fifteen% minimum provided for in the proposed legislation, for those who choose to start paying this year.
According to official calculations, there are 2,500 Brazilians with resources in this type of fund, with a total estimated value of resources of 756.8 billion reais (US$155.2 billion or about 143.47 billion euros).
Secondly, the Executive proposed to Congress a bill that provides for the annual taxation of income from Brazilian capital located abroad, including tax havens.
The text establishes a progressive annual tax of up to 22.5%compared to current regulations, which only pay taxes on capital abroad when it is redeemed and returned to Brazil.
The Minister of Finance, Fernando Haddad, affirmed this Monday that the taxation of the exclusive funds of the “super-rich” and of capital abroad is not “revanchism”, but rather approaches the practices already adopted by some of the most developed countries.
“There is no sentiment here other than that of social justice. That is the determination of the president and all the ministers: to bring to Brazil the best international practices” to have a country that develops sustainably, “from the fiscal, social and environmental point of view”he declared.
These measures that aim at great fortunes are part of the federal government’s strategy to increase collection and thus be able to balance the country’s public accounts.
Source: EFE
Source: Gestion
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
