Yesterday (November 5), the Federal Senate unanimously approved Bill No. 1,087/2025 (“PL No. 1,087/2025”), which increases the income tax exemption range (up to R$ 5,000.00 per month) and establishes a minimum income tax rate on taxpayers’ income, including dividends (referred to as high income taxation).

The approval was based on the report presented by Senator Renan Calheiros, which basically maintained the text approved in early October by the Chamber of Deputies, making only editorial and legislative technical changes. Considering that the content of Bill No. 1,087/2025 was not changed by the Federal Senate, the bill will not need to return to the Chamber of Deputies, proceeding directly to the President of the Republic for sanction.

If the law is published in 2025, the new rules will take effect as of January 2026.Further details on the rules set forth in Bill No. 1,087/2025 can be found in the newsletter prepared by FLH Advogados: https://www.flha.com.br/publicacoes/camara-aprova-a-tributacao-minima-das-altas-rendas/

The Tax Team at FLH Advogados is available to answer any questions on this topic.