Dividend taxation comes into force in 2026.
The proposal applies 10% IR on amounts that exceed R$ 50 thousand per month per paying source.
This is the first significant change since 1996 and marks an attempt to bring Brazil into line with other countries that already tax distributed profits.
The charge will be monthly, The tax is paid directly at source and only takes into account the surplus above the limit.
Dividends sent abroad will also have 10% withheld.
In addition, taxpayers with a very high annual income fall under the rule of minimum tax, This prevents the effective load from falling below a defined threshold.
Shareholders who receive high dividends, family holdings and businesses with strong profit distribution are the most affected.
There is an important rule: profits ascertained and approved until 31/12/2025 remain exempt, even if they are paid later.
In other words, 2025 becomes a strategic year for organizing distribution and documenting everything correctly.
Review your distribution model, assess whether anticipating profits makes sense and check what your tax burden will look like after 2026.
For many businesses, it will be necessary to adjust pro-labour, reorganize company structures and plan cash flow.
Ideally, you should discuss this with your accountant as early as 2025 to avoid unnecessary taxes.