Withholding income tax on dividends: practical aspects

Law No. 15,270/2025 provides for the withholding of 10% IRRF on the payment, credit, or delivery of dividends to individual partners (amounts above R$ 50,000 per month) and legal entity partners from abroad.

It is essential to pay attention to the deadlines to which the legal entity distributing dividends is subject for payment of this tax:

It should be emphasized that IRRF is not only due when there is a transfer of monetary values, but in any form of dividend distribution, such as the capitalization of profits and distribution through the transfer of assets to the partner, for example.

Therefore, it is necessary that the DPC accounting department be informed in advance of any transaction involving profit distribution.

We also emphasize the need to immediately send the minutes of partner meetings, assemblies, and whenever there are any changes to corporate acts.

In the case of profit distribution, these documents are necessary to avoid undue taxation of profits distributed until December 31, 2025, in accordance with Law No. 15,270/2025.

Also see: Federal Revenue Service updates income tax rules for profits, dividends, and foreign income

Law No. 15.270/2025: New rules for Income Tax and taxation of profits and dividends

Tax support

Domingues e Pinho Contadores has a team of specialists who advise individuals and companies on the application of tax laws. Take advantage of this up-to-date insight and compliance with best tax practices: dpc@dpc.com.br.