Regarding dividends, it is worth highlighting the following points of the Bill:
Dividend Taxation: As of January 1, 2022, dividends will be taxed at source at a rate of 20%. The same understanding that was established after the enactment of Law No. 9,249/95 is expected to prevail, meaning that taxation should fall on dividends generated from January 1, 2022 onwards, preserving the acquired right to exemption regarding profits/dividends generated up to December 31, 2021, even if distributed after that date.
Dividends Distributed by Micro and Small Businesses: Dividends distributed by companies subject to the SIMPLES tax regime will be exempt up to a limit of R$20,000.00 per month per partner. This limit must be observed by all partners considered related persons (spouse, partner, or blood relative up to the third degree). Once this limit is exceeded, the excess will be taxed at source at a rate of 20%.
Dividend Capitalization: Dividends converted into capital increases will not be subject to the 20% income tax (IRFonte), provided there is no capital refund to shareholders in the five years prior to or after the dividend capitalization. Furthermore, the shares/quotas received as a result of the capitalization will have zero cost;
Dividends Paid Through Delivery of Assets and Rights: The company may pay dividends to its shareholders through the delivery of assets and rights. The company must provide a specific appraisal report. If the value of the asset/right exceeds the acquisition cost, the gain will be included in the IRPJ and CSLL calculation basis. If the value is lower than the dividend paid, this value must be adopted, and any loss cannot be included in the calculation of taxable income.
