Revenue expects to raise R$17.2 billion with income tax on dividends

Income tax collection on dividends is expected to total R$17.2 billion this year, below the R$28 billion initially foreseen in the Budget. The estimate was presented this Friday (24) by the Federal Revenue Service during the publication of the Bimonthly Income and Expense Assessment Report. The taxation of dividends was created to compensate for the loss of revenue caused by the expansion of the Income Tax exemption range for taxpayers with a monthly income of up to R$5,000, a measure that also has an estimated impact of R$28 billion this year.

Revenue expects to obtain another R$15 billion between July and December. Collection The head of the Center for Tax and Customs Studies at the Federal Revenue, Claudemir Malaquias, said that the projection for the second half of the year will still be closely monitored by the Tax Authorities. "The expectation is to raise around R$15 billion in the second half of the year, totaling approximately R$17.2 billion for the year, said Malaquias during the presentation of the report.

The value represents a frustration of approximately R$10.8 billion in relation to the original estimate included in the Budget. Estimate Despite the lower-than-expected revenue, the Minister of Planning and Budget, Bruno Moretti, said that it is too early to conclude that the estimate will need to be revised and highlighted that this type of revenue does not show uniform behavior throughout the year. “You can’t treat this in a linear way.

Now, we are entering the second half of the year and there will be more basis for understanding whether this projection will be maintained or not. In the next report, with more updated numbers, we will make new decisions", he stated. Moretti highlighted that other tax revenues have been exceeding expectations and help to compensate for the lower-than-expected performance of taxation on dividends.

"We still have a margin in the [primary result] target of R$10.8 billion. Today, with the premises used in the report, we are very confident about meeting our target with ease, he said. The minister highlighted that the estimated total Income Tax collection this year increased by R$12.7 billion between the bimonthly reports released in May and July.

Compensatory measure The taxation of dividends came into force as one of the main measures to compensate for the expansion of the exemption from Personal Income Tax for those who receive up to R$5,000 per month. Under current rules, dividends distributed to individuals are now taxed at 10%, both for residents in Brazil and for remittances abroad. Amounts of up to R$50,000 per month received from the same company remain exempt.

Fiscal target Even with lower revenue than expected, the government maintained the Budget's fiscal projections. The bimonthly report estimates a primary surplus of R$10.8 billion this year, with expenditure deductions authorized by the fiscal framework and the Federal Supreme Court (STF).”"