Brazil’s Ministry of Finance announced that it plans to present proposals to Congress to tax big tech companies and implement a global minimum tax of 15% for multinational corporations on 2 September 2024.

These new tax measures will be enforced if Brazil’s government fails to achieve its fiscal goal for 2025 due to a revenue shortfall.

In a presentation on the 2025 budget bill submitted to Congress on 30 August 2024, the Finance Ministry projected a primary surplus of BRL 3.7 billion for 2025. It also anticipated potential revenue of BRL 17.9 billion from increased income taxes on specific items.

Earlier, Brazil’s government introduced a bill to Congress to raise revenue through increased income taxes, mainly targeting banks with a significant tax rate hike on 30 August 2024.

The proposed legislation seeks to adjust the social contribution tax on corporate income (CSLL) and the interest on equity payments (JCP).

Brazil’s Finance Minister Fernando Haddad reportedly unveiled plans to raise levies on interest on equity and the social contribution on profits (CSLL) without disclosing any specifics of the tax increases.

The Senate recently approved this extension under Bill No. 1847 of 2024. The bill is awaiting approval from the Chamber of Deputies.

The Ministry said the government is relying on these revenues for the upcoming year as part of a BRL 46.7 billion package, which involves ending compensating tax waivers on payrolls for companies in specific sectors and smaller municipalities.

The Ministry also plans to raise BRL 58.5 billion through tax negotiations in 2025, including 30 billion from a new programme for large taxpayers starting in 2025. It also plans to raise an additional BRL 28.5 billion from Brazil’s Federal Administrative Council of Tax Appeals (CARF) rulings.

Furthermore, the Ministry projects rectifying tax distortions, which will generate an additional BRL 20 billion in revenue next year.