The employee profit-sharing plan (participação nos lucros ou resultados, PLR) related tax withholding thresholds in Brazil have recently been modified. This will be applicable from 1 January 2014.
For the taxable year 2014, the tax withholding brackets applicable on PLR payouts to employees are as follows:
| Payouts amount (BRL) | Applicable tax rates | Amount deducted (BRL) |
| Up to 6,270 | Exemption | 0 |
| From 6,270.01 to 9,405 | 7.50% | 470.25 |
| From 9,405.01 to 12,540 | 15% | 1,175.63 |
| From 12,540.01 to 15,675 | 22.50% | 2,116.13 |
| Above 15,675 | 27.50% | 2,899.88 |
Companies in Brazil making PLR payouts to employees will have to ensure that tax is withheld from such payments to employees as per the above withholding tax table to avoid penal consequences.
