Brazil Senate Approves Tax Hike for Fintechs, Betting Companies

Brazil’s Senate Economic Affairs Committee approved a bill on Tuesday that increases taxes on fintechs and betting companies.

• Proposal passed by 21 x 1 votes; it doesn’t require a vote on Senate’s floor and now moves to the lower house
• Social contribution on net profit (CSLL) tax rate for fintechs, organized over-the-counter market administrators, stock and commodities exchanges, and clearing and settlement entities will rise to 12% through Dec. 2027 and to 15% starting in 2028
• Tax rate for credit, financing and investment companies will increase to 17.5% through Dec. 2027 and to 20% in 2028
• Withholding tax on interest ...