The extraordinary secretary for tax reform, Bernard Appy, said in an interview with CNN that the House’s approval of the taxation of offshore and proprietary funds is a positive signal from Congress in favor of income tax (IR) reform.
“This signal from Congress that it is willing to discuss income tax issues, even if it does not sit well with those who profit from the distortions of the current system, is a positive signal for what comes next, going forward of the debate on taxation. income reform,” he said.
Appy indicated that the current income tax system presents a series of distributive distortions, which harm the poorest and which will be analyzed in the second phase of the reform.
For the secretary, the taxation of offshore and proprietary companies presents these problems, and the bill (PL) approved by the House corrects them.
“With offshores and exclusive funds, people with high incomes benefit from tax deferrals which do not exist for the middle classes who place their money in common investment funds,” he underlines.
The PL was part of the plan to increase Treasury revenue. In the midst of negotiations on the project, the conditions sent were partially modified to ensure approval of the proposal.
“The House’s willingness to discuss openly and based on data and evidence is positive for the debate on income reform,” he adds.
Offshore and exclusive taxation
Currently, in the case of offshore companies, taxation only occurs if a company located abroad transfers its profits to the individual partner in Brazil. However, if the partner chooses to keep the resources offshore, taxation is deferred and, in some cases, does not even occur.
According to the opinion of MP Pedro Paulo, rapporteur of the bill which deals with the taxation of high-income funds, the taxation will be at the rate of 15%, regardless of the value of the income, on an annual basis.
Exclusive funds are products created specifically for one or more shareholders (generally members of the same group or family). Currently, taxation only occurs when the demand is redeemed.
Under the proposal, income from investment funds will be subject to periodic semi-annual taxation (called “come-quotas”), with rates of 15% in the case of long-term funds and 20% in the case of long-term funds. short term. term fund.