Brazil Lower House Cuts Tax Benefits, Raises Tax on Fintechs

Brazil’s Lower House approved on Wednesday a bill that reduces federal tax benefits for various sectors by 10%, according to information from Agencia Camara.

• Bill also increases taxation on betting companies, which will rise from 12% to 13% in 2026, 14% in 2027, and 15% in 2028
• Proposal foresees an increase from 15% to 17.5% in the withholding tax on interest on equity distributed by companies to shareholders as remuneration
• There is also an increase in Social Contribution on Net Profit tax:
  • For fintechs and capitalization companies, tax increases from 15% to 17.5% until 12/31/2027 and to 20% on ...