Brazil: Increased tax rates on capital gains effective from January 1 2017

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement


Brazil: Increased tax rates on capital gains effective from January 1 2017

pereira.jpg
conomy.jpg

Alvaro Pereira

Mark Conomy

On April 29 2016, the Interpretative Declaratory Act 3/2016 (ADI 3/2016) was published, providing for the Brazilian Federal Revenue Authorities' (RFB) position that the increased progressive tax rates in relation to capital gains derived by individuals (and non-residents) should only apply from January 1 2017.

By way of background, Law 13,259/2016 was recently introduced providing that capital gains earned by individuals (and non-residents) arising on the alienation of Brazilian assets and rights of whatever nature are subject to progressive rates varying from 15% to 22.5% (depending on the amount of the gain).

Law 13,259/2016 provided that the law entered into effect from the date of publication producing effects from January 1 2016. This created some uncertainty in Brazil around the constitutionality of the particular amendments that result in an increase in tax due. ADI 3/2016 provides that the articles of Law 13,259/2016 dealing with the increase in capital gains tax rates should only be applicable from January 1 2017.

ADI 3/2016 is a welcome development, providing clarity for taxpayers in relation to the capital gains tax rates that should be applied to transactions undertaken in 2016.

Alvaro Pereira (alvaro.pereira@br.pwc.com) and Mark Conomy (conomy.mark@br.pwc.com)

PwC

Website: www.pwc.com.br

more across site & shared bottom lb ros

More from across our site

The UAE accounted for most Middle East promotions and new rankings, as A&M Tax, Baker McKenzie, Dhruva Consultants and DLA Piper breached the top tier
Spanish-headquartered multinationals lead on reporting quality, while US and Swiss groups lag in the Fair Tax Foundation’s expanded analysis
Former IRS commissioner Danny Werfel joins ITR for a must-listen conversation spanning his time leading the agency, his AI risk framework, and the future of the OECD
Tax and legal services was PwC’s fastest-growing business line last year, helping to put the firm back on a par with its big four rivals
Ex-EY and Hourani & Partners leader Zain Satardien is using flexible staffing and AI-enabled systems to test a leaner model for specialist legal and tax advice
The big four firm is rightfully prioritising transparency and accountability as it seeks to rebuild from its scandal, but a glaring structural issue remains
A recent hiring flurry has taken the firm’s number of partner appointments this year to 121 and put it on track to hit 160 partner target early
The move brings specialist tax and litigation capability to EY as it seeks to close the gap on Baker McKenzie and Venezuela’s leading local firms
The industry’s response to AI requires an unfamiliar ingredient as firms battle to shape their futures
The ambitious big four challenger firm has also appointed ex-RSM partner Brad Ashton to build out its customs and global trade practice
Gift this article