US EditionSyndico: Work Generated by the End of 2025 Will Not Be Taxed
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The sanctions of the bill which changes the rules of the Income Tax tax result in significant changes for taxation in Brazil from 2026. The new legislation sets an exemption for those who receive up to R$ 5 thousand months and creates a minimum 10% discount for returns higher than R$ 1.2 million per year. The measure represents a historical correction in freezing the IR table for low returns. Currently, taxpayers who earn up to R$ 5 000 pay appr…
The Minister of Planning and Budget, Simone Tebet (MDB), stated that the income tax exemption for those earning up to R$ 5,000 represents what she called "tax justice" for the middle class in Brazil, and that the enactment of the measure by President Luiz Inácio Lula da Silva (PT) represented "a historic day." The proposal, sanctioned on Wednesday (November 26, 2025), was a campaign promise of President Lula. According to Tebet, the government s…
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