Approved Bill that changes the taxation of financial investments abroad, Offshore Structures, and Investment Funds

On November 29, 2023, the Brazilian Federal Senate approved the Bill No. 4.173/2023, which changes the taxation rules for individuals regarding financial investments held abroad, as well as for controlled foreign entities (offshores) and trusts. The Bill also changes the taxation rules for closed-end investment funds in Brazil, introducing, among other changes, the periodic income tax “come-cotas” for such funds.

The approved text will be sent for presidential sanction, which is expected to occur soon. If sanctioned and the law is published by the end of 2023, its effects will come into force starting from January 1, 2024.

For more information on the matter, please access the link.