The bill establishes a 7.5% Income Tax (IR) on earnings from Agribusiness Credit Notes (LCAs) and Real Estate Credit Notes (LCIs). As Zarattini had previously indicated, income from savings deposit accounts and various other financial instruments will remain exempt from withholding tax. Incentivized debentures will also continue to be exempt from Income Tax.
Another item that remained unchanged in the report compared to the government’s original draft is the increase in the tax rate on the gross gaming revenue (GGR) of betting companies — from 12% to 18% — with the additional 6% allocated to social security for healthcare initiatives. The rapporteur considered this a measure of “fiscal and social justice.”
At the same time, the Senate’s Committee on Economic Affairs (CAE) approved this Wednesday (24) the bill reported by Senator Renan Calheiros, which expands the Income Tax exemption threshold to those earning up to R$ 5,000 (US$943) per month.
The movement in the Senate takes place in parallel to a similar bill in the Chamber of Deputies, reported by Congressman Arthur Lira, his political rival in Alagoas, which was approved in a special committee in July. Despite being granted urgent status, the proposal has not yet been taken to the floor. According to Renan, the Chamber’s slow pace opened the door for the Senate to take the lead.
“The progress of this matter is already justified; they decided to vote on the bill in the Chamber. In several interviews, the rapporteur in the Chamber (Lira) has tried in his opinion to shield betting companies from the tax increase contained in Provisional Measure 1,303. He argues that the rate should not rise because half of the betting operators are operating illegally.”
In the Chamber, House Speaker Hugo Motta announced that the vote on the Income Tax exemption bill will take place next week.
“The Chamber of Deputies will vote on Wednesday (Oct 1) on the income tax exemption bill, reported by Congressman Arthur Lira. The lawmaker presented his report today to the Leaders’ College. We will move forward with balance and dialogue, working on important agendas for Brazil.”
Source: GMB
