President Luiz Inácio Lula da Silva (Workers’ Party) sanctioned a law to tax offshore investments (companies abroad or investments made abroad) and exclusive funds used by the super-rich. The new rule was published in Brazil’s Federal Register (also known as DOU) on Wednesday (13).
The measure is part of a package of governmental proposals whose aim is to zero the State’s deficit goal next year. The bill was approved by the Chamber of Deputies and the Senate.
The law provides for the creation or increase in rates applicable to investment funds with a single shareholder (so-called exclusive funds) or investments in offshore companies (companies abroad that invest in the financial market).
By 2025, the government will be able to raise around 30 billion reais (US$ 6,16 billion) from taxing offshore companies and funds, according to estimates.
With the recently sanctioned law, offshore companies will be taxed once a year, on December 31st, at a rate of 15%. Exclusive funds taxation will be carried out twice a year (each semester).
According to the government, about 2,500 Brazilians have investments in so-called exclusive funds with a minimum amount of 10 million reais.
