Proposed tax changes under PM No. 1.303 will not take effect after the required approval is not secured by the deadline.
Brazil’s National Congress issued Declaratory Act No. 67 on 15 October 2025, which officially confirmed that Provisional Measure (PM) No. 1.303, introduced on 11 June 2025, expired on 8 October 2025.
This follows the failure of the Chamber of Deputies to approve the measure by the required deadline.
PM No. 1.303 proposed significant changes to the taxation of financial investments and virtual assets, including a higher withholding tax on interest on net equity (JCP), an increased social contribution on net profit (CSLL) rate for certain financial institutions, and a flat 17.5% income tax rate on specific financial investments.
However, with the measure no longer valid, these proposed changes will not take effect.
