Bill 2337/2021 provides that profits from subsidiaries, branches, and agencies of legal entities headquartered abroad will be automatically considered received on the closing date of the period, thus subject to the 20% IRFonte rate. If this provision is enacted, it will be necessary to analyze each specific case, considering the existence of a Double Taxation Agreement between Brazil and the country where the companies with establishments are headquartered.
Another, not necessarily innovative, proposal concerns the automatic provision of profits abroad. In a very simplified manner, individuals who manage their investments and holdings outside Brazil through a holding company headquartered abroad will be required to tax the profits shown on their December 31st balance sheet each year starting in 2022, regardless of whether such profits are distributed or not.
If this provision is maintained, it will be necessary to evaluate the convenience of maintaining the corporate structure, or even developing another more efficient one from a tax point of view.
