Brazil’s Senate Considers Tax On High Net Worth Individuals

Brazil’s Senate is considering the introduction of a new wealth tax on high net worth individuals.

Senator Vanessa Grazziotin presented draft legislation for the tax on millionaires to the Senate this week.

Under Bill 139/2017, the tax would apply to individuals with a net worth of more than 8,000 times the monthly exempt limit for income tax. This would see the tax being applied to individuals with a net worth of more than BRS15.2m (USD4.8m), given that the current threshold is BRS1,900.

It is proposed there would be three tax rates: those individuals with a net worth of between 8,000 and 25,000 times the exempt threshold would be charged 0.5 percent, individuals with a net worth of 25,000 to 75,000 times the threshold would be subject to a 0.75 percent rate, and those with a net worth of more than 75,000 times the threshold would face a one percent charge