Brazilian federal government increases the income tax rates levied on capital gains realized by individuals and the withholding income tax levied on interest on equity due or payable by Brazilian legal entities to equity holders.
As earlier announced by President Dilma Rousseff and Finance Minister Joaquim Levy, in an effort to avoid budget deficits, on September 22 and 30, 2015, respectively, the Brazilian federal government proposed new rules increasing (i) the income tax rates levied on capital gains realized by individuals on the sale or disposition of assets and rights (Provisional Measure No. 692/15) and (ii) the withholding income tax levied on interest on equity due or payable by a Brazilian legal entity to its equity holders (Provisional Measure No. 694/15).
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