Chamber pleases Lula government by approving taxation for “super rich”

The Chamber of Deputies approved on Wednesday night (25) Bill 4173/23, presented by President Luiz Inácio Lula da Silva (PT), which determines the taxation of investments by individuals abroad and the anticipation of tax in closed-end funds in Brazil. The score was 323 in favor and 119 against.

The deputies rejected all the highlights presented by the parties in an attempt to change parts of the text that foresees the taxation of a 15% rate on the future income of exclusive funds in Brazil, intended mainly for the so-called “super-rich”. The proposal goes to the Senate for analysis.

The approved text was a substitute for the rapporteur, deputy Pedro Paulo (PSD-RJ), which incorporates Provisional Measure 1184/23, on the incidence of the so-called “come-quotas” in closed-end funds. According to the project, taxation of investments will occur on income from financial investments, profits and dividends from entities controlled abroad (offshores) and trusts.

After negotiations to facilitate the vote on the project, the rapporteur increased the rate from 6% to 8% in the option given to taxpayers to anticipate the incidence of tax on income from 2023 on closed-end funds and on updating assets abroad at market value in December 31, 2023.

The proposal is one of the federal government’s priorities to improve public accounts. Despite the resistance to approval, the government leader, deputy José Guimarães (PT-CE), voted on the project this Tuesday (25). “The text corrects tax distortions in Brazil, and provides tax justice. This is the perspective and we are consolidating a set of cleaning and fundraising measures to make Brazil grow. We did not increase the tax burden or create new taxes”, defended Guimarães.

The government’s estimate is to raise R$3.21 billion for the year 2023; R$13.28 billion, in 2024; R$3.51 billion, in 2025; and approximately R$3.86 billion, in 2026. The money is important to meet the goal of zeroing the primary deficit in 2024, as stipulated by the new fiscal framework, approved at the end of August by Congress.