On 21 September 2021, the Senate made an announcement that the Senate will analyze tax reform Bill, PL 2.337/2021 , a bill that changes the income tax rules. The Bill represents the second phase of the tax reform, which was approved by the Chamber of Deputies at the beginning of the month.
Under the Bill, the reduction of the corporate income tax rates is being considered by the National Congress as follows: the standard corporate income tax (IRPJ) rate will be reduced from 15% to 8% and the Social Contribution on Net Income (CSLL) rate will be reduced from (i) 9% to 8% in general, (ii) 20% to 19% for banks and (iii) 15% to 14% for other financial institutions, which reduces the aggregate rate from 34% to 26% (the 10% surtax for larger companies would remain unchanged).
In accordance with the substitute, profits and dividends will be taxed at 15% as income tax at source, but stock investment funds are excluded from this charge.
One of the measures of the proposal predicts that the exemption rate for the Income Tax of Individuals (IRPF) will be increased from R$1,903.98 to R$2,500 monthly.
