Provisional Measure No. 1.303/2025: New Tax Rules for Financial Investments in Brazil
- Clivanir Cassiano de Oliveira
- Jun 14
- 4 min read
On June 11, 2025, the Brazilian Federal Government published Provisional Measure No. 1.303/2025, introducing significant changes to how individuals and companies are taxed on their investments in Brazil and abroad. These changes affect fixed-income investments, equities, crypto assets, investment funds, and offshore structures.
Although the Provisional Measure (MP) is effective immediately upon publication, it must still be approved by the National Congress to become permanent law. If approved, the new income tax (IR) rules will only take effect starting January 1, 2026, in compliance with the constitutional principle of tax anteriority.
This article explains, in a clear and practical manner, the main changes that may directly impact your financial and tax planning.
What Changes in Investment Taxation?
The MP No. 1.303/2025 introduces five major changes:
Unified tax rates — the current regressive rates are replaced by a flat rate for certain investments.
End of specific tax exemptions, such as LCI, LCA, CRI, CRA, and incentivized debentures (for new issuances).
Possibility to offset gains and losses across different types of financial investments.
Specific rules for foreign investments and cryptocurrencies.
Increased taxation on interest on equity (JCP).
Fixed-Income Investments
Current Rule (Until 12/31/2025):
Taxed at source with regressive rates from 22.5% to 15%, depending on the holding period.
Full tax exemption for instruments like LCI, LCA, CRI, CRA, and incentivized debentures.
New Rule (Starting 01/01/2026):
Flat tax rate of 17.5% for all fixed-income investments.
Previously exempt securities will now be subject to 5% tax at source, but only for new issuances from 2026 onward. Instruments purchased before 2026 remain tax-exempt until maturity.
Investment Type | Until 12/31/2025 | From 01/01/2026 |
CDB, RDB, Government and Private Bonds | 22.5% to 15% (regressive) | 17.5% (flat rate) |
LCI / LCA | Exempt | 5% (new issuances only) |
CRI / CRA | Exempt | 5% (new issuances only) |
Incentivized Debentures | Exempt | 5% (new issuances only) |
Equity Investments (Stocks, REITs, Derivatives)
Current Rule (Until 12/31/2025):
Stocks: 15% on monthly net gains, exempt for sales up to BRL 20,000 per month.
Day Trade: taxed at 20%.
Real Estate Investment Funds (REITs) and other funds: 20% on capital gains, with income distributions exempt if the investor holds less than 10% of the fund’s shares.
New Rule (Starting 01/01/2026):
Flat 17.5% rate with quarterly reporting.
Tax exemption for stock sales up to BRL 60,000 per quarter.
Day Trade: taxed at 17.5%, with no exemption.
REITs: capital gains taxed at 17.5%, but income distributions remain tax-exempt for investors holding less than 10% of the shares.
Operation | Until 12/31/2025 | From 01/01/2026 |
Stocks | 15% monthly. Exempt ≤ BRL 20,000/month | 17.5% quarterly. Exempt ≤ BRL 60,000/quarter |
Stocks – Day Trade | 20% monthly | 17.5% quarterly (no exemption) |
REITs – Capital Gains | 20% | 17.5% quarterly |
REITs – Dividends | Exempt (if <10% ownership) | Remains exempt (if <10% ownership) |
Interest on Equity (JCP)
The withholding tax rate increases from 15% to 20% starting in 2026.
Dividends remain tax-exempt for individuals; however, a bill is under discussion that could change this in the future.
Investment Funds
A flat 17.5% tax rate applies to gains from all open-ended investment funds (fixed-income, multimarket, and equity funds).
The “come-cotas” (semiannual prepayment tax) continues for fixed-income and multimarket funds but remains excluded for equity funds.
REITs and Fiagro funds: Income distributions will be subject to 5% withholding tax, provided the fund:
Has at least 100 shareholders;
Has shares traded on a stock exchange or organized market;
The shareholder holds less than 10% of the fund’s shares or income.
Foreign Investments and Offshore Entities
Tax rate increases from 15% to 17.5% starting in 2026, applicable to:
Income from financial investments abroad;
Profits from controlled offshore entities.
This complements the rules established by Law No. 14.754/2023, which introduced taxation on offshore structures controlled by Brazilian residents.
Crypto Assets and Digital Currencies
Flat tax rate of 17.5%.
No minimum exemption threshold.
Tax must be reported quarterly, with payment via DARF (Brazilian tax payment slip).
Losses can only be offset against gains from crypto assets, within the same quarter or the following five quarters.
Offsetting Gains and Losses
From 2026 onwards, investors will be allowed to offset gains and losses across different investment types, including:
Stocks, funds, fixed income, and derivatives.
⚠️ Crypto assets remain separate: losses can only offset gains from other crypto operations.
Conclusion: How to Prepare?
Legislative Process Alert:
The Provisional Measure has an initial validity of 60 days, until August 10, 2025, and can be automatically extended for another 60 days if not reviewed by Congress within that period. If it is not voted on within 45 days, the MP enters urgency status, meaning it will take priority in the legislative chamber (House or Senate) until its final decision.
It is important to note that the text may be amended during the legislative process. Even if fully approved and converted into law, the new tax rules will only take effect on January 1, 2026, respecting Brazil’s tax anteriority principle.
Need Guidance?
If you hold investments in Brazil or abroad and wish to understand how these changes impact your personal or family situation, our office is fully prepared to assist you.
We offer comprehensive tax planning, succession strategies, and legal guidance to help you navigate this new tax landscape with confidence.
Comments