New taxation rules for natural persons in Brazil
In the wake of recently enacted tax reforms, 2024 saw a series of significant proposals to change the taxation of natural persons in Brazil. In general terms, Supplementary Bill No. 108/2024 is set to establish a steering committee for the country’s new Goods and Services Tax (IBS) and also includes new rules concerning the Tax on Inheritance and Donations (ITCMD) and Municipal Real Estate Transfer Tax (ITBI).
New rules for taxation on investments abroad also came into effect, which forced investors to make important decisions about the structures for managing their financial resources, assets and income. Moreover, debates over income tax reform are expected to begin in 2025, which should affect an array of transactions involving natural persons.
