Law No. 15,270/2025 was recently published, representing a significant reform in income tax legislation by reinstating taxation on the distribution of profits and dividends, ending the full exemption that had been in place since 1996.
The rule establishes a 10% Withholding Income Tax (WHT) on dividends remitted to beneficiaries abroad. However, a transitional regime has been established to preserve the exemption for profits accrued up to the year 2025.
The modifications are relevant, particularly regarding the requirements to qualify for the transitional rule: the distribution must be formally approved by December 31, 2025, and the payment must strictly follow the schedule originally stipulated, with a recommendation to settle payments by 2028. Also noteworthy is the resolution of the apparent conflict between the new law and the Brazilian Corporations Law (Law 6,404/1976) to ensure the validity of deferred payments.
The Tax Law team at William Freire Advogados is available to clarify any questions regarding this matter.
Paulo Honório
Sócio
