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Government Discloses Bill Ending Equity On Interest From January 2024

BRAZIL
  • BRAZIL DISCLOSES BILL ENDING EQUITY ON INTEREST JAN. 2024: VALOR
  • Further colour on the Valor headline above on JCP:
  • The government has published a bill that ends interest on own capital (JCP) from January 1, 2024. The text says that interest paid or credited in the calendar year 2024, as remuneration of equity, will be subject to income tax at source.
    • However, the PL “does not prevent the deduction of accrued interest” to determine “the actual profit and the CSLL calculation base for the calendar year 2023, even if paid or credited in the calendar year 2024”.

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