Multinational groups with presence in Brazil should analyze the tax profile of their Brazilian entities in view of the potential elimination of the long-standing interest on equity (Juros sobre o Capital Proprio in Portuguese) tax deduction. On August 31, the Brazilian administration presented to the Congress floor Bill 4,258/23 (Projeto de Lei 4.258/2023 in Portuguese), which seeks to terminate the long-standing interest on equity tax benefit (also known as the “Brazilian notional interest deduction” or the “Brazilian deductible dividend”).
Background
The interest on equity benefit roots can be traced back to 1995 and the Brazilian government’s efforts to ...
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