Provisional Measure Changes Financial Investements Taxation and Virtual Assets

Published on June 11, Provisional Measure No. 1.303/2025 introduces significant changes to the taxation of financial investments and crypto assets in Brazil, affecting both individual and corporate investors starting January 1, 2026.

The regulation also addresses the Social Contribution on Net Profit (CSLL) owed by financial system institutions, introducing new applicable rates starting October 1, 2025.

Check out the main points of the MP (Provisional Measure):

New Tax Rate for Individuals

The main change for individuals is the creation of a single tax rate of 17.5% on the earnings from various financial investments. This rate will apply to net gains obtained from transactions in stock and over-the-counter markets, interest from loans of securities, and income from investment funds, according to Law No. 14.754/2023.

This rate replaces the old progressive rates, making the calculation process easier for taxpayers. It is important to remember that the Withholding Income Tax (WHT) will be considered as an advance payment of the tax due in the Annual Adjustment Declaration (AAD).

Interest on Equity Reserve

The Interest on Equity Reserve (JCP), previously taxed at a rate of 15%, will now be subject to a withholding tax of 20%. This change directly impacts companies that pay JCP to their shareholders and, consequently, investors who receive this type of income.

End of Exemption for Securities such as LCI, LCA, and CRI

One of the most significant changes is the end of the Income Tax exemption for new securities such as LCI, LCA, CRI, and CRA, issued from January 2026 onwards. These securities, previously exempt from Income Tax, will now have a 5% withholding tax on the earnings. However, for those who already hold these securities purchased by the end of 2025, the previous rules will remain in place, ensuring the exemption until the maturity of the securities.

Taxation of 17.5% for Investment Funds

The taxation on the income from investment funds will be 17.5% at source, except in the case of Real Estate Investment Funds (FII) and Investment Funds in Agroindustrial Production Chains (Fiagro), which will follow specific taxation rules. The main change here is the simplification of the tax calculation and payment, which will now be more straightforward.

Cryptocurrencies

The taxation on cryptocurrencies will also undergo changes. Starting in 2026, gains from cryptocurrencies will be taxed at a rate of 17.5%, with quarterly assessment. Additionally, the offsetting of losses in cryptocurrency transactions will be allowed, but losses incurred after January 2026 cannot be offset against other types of financial income in the DAA.

Taxation of Foreign Investors

Foreign investors who earn income from financial investments or cryptoassets in Brazil will be taxed at the same rate of 17.5% applicable to residents. However, for investors in privileged tax jurisdictions, the rate will be 25%. The Withholding Income Tax (IRRF) will be final, with no possibility of offsetting losses and gains.

CSLL of Financial Institutions

Insurance companies, payment institutions, currency exchange houses, and real estate credit companies will now pay 15% CSLL. The rate for banks, credit, financing, and investment companies is 20%.
The new rate will take effect starting October 1, 2025.

Tax Support

DPC provides guidance to its clients on the latest changes in legislation, assisting with daily operations and supporting business decisions. Count on this specialized support: dpc@dpc.com.br.