Provisional Measure No 597 of December 26, 2012 came into effect on 1 January 2013.This introduces a new regime for the taxation of profit-sharing payments received by employees from their employers.
The change permits employed persons to obtain up to BRL6,000 (USD2,950), which is free from withholding tax with a developing set of rates in place for PLR collects in excess of this amount each year. A rate of 7.5% is in place on income received between BRL6, 000 and BRL9,000; a 15% rate is levied on PRL amounts above BRL9,000 and to BRL12,000; 22.5% on income above BRL9,000 up to BRL15,000; and 27.5% on PRL income thereafter.
