# Are dividends taxed in Brazil from 2026?

Last updated: 25 October 2026
Country: Brazil
Category: tax

**Quick answer:** 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.

## 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 próprio 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

## Related questions

- [What are IRPJ and CSLL, and what rate do Brazilian companies pay?](https://accounts-os.com/br/questions/what-is-irpj-and-csll)