Are dividends taxed in Brazil from 2026?
Yes, above a threshold. From 2026, when a company pays one resident individual more than R$50,000 of profits in a month, it withholds 10% on the whole amount. Profits for years up to 2025 approved by 31 December 2025 stay exempt.
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Detailed Explanation
## The new rule
Lei 15.270/2025 introduced withholding of 10% when one company pays profits or dividends of more than R$50,000 in a month to the same individual resident in Brazil. The 10% applies to the whole amount, not only the excess. Up to R$50,000 a month there is no withholding.
## Transition
Profits from results up to 31 December 2025 stay exempt even if paid from 2026 to 2028, provided the distribution was approved by 31 December 2025.
## High incomes
Individuals with total income above R$600,000 a year face a minimum annual tax that rises to 10% at R$1.2 million.
## Interest on equity
Juros sobre capital pr贸prio are withheld at 17.5% from 2026, up from 15%.
## What Finn does
Before a distribution, ask Finn: it totals that person's distributions for the month from your books and tells you whether the R$50,000 line is crossed. Your contador confirms the treatment.
Source: https://www.planalto.gov.br/ccivil_03/_ato2023-2026/2025/lei/l15270.htm
Common Mistakes to Avoid
- Thinking the 10% applies only to the excess over R$50,000
- Assuming every 2025 profit is exempt without checking the approval date
Frequently Asked Questions
Is there withholding below R$50,000 a month?
No.
What is the JCP rate?
17.5% from 2026.
Practical Tips
- Plan distributions month by month per partner
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