In an interview with Estadão’s E-Investidor, our partner Ana Cláudia Utumi discussed the impact of the tax reform on tax-exempt investments for high-income earners.
Law 15,270 of 2025, which created the Minimum Income Tax (IRPFM) for annual income exceeding R$ 600,000, may reduce the appeal of assets such as LCIs, LCAs, CRIs, and CRAs among high-income investors. Since exempt income is not included in the IRPFM tax base, it no longer functions as a tax credit.
According to Ana, this consequence was not intentional; it is an unintended effect of the reform, which did not carry out a comprehensive review of the Income Tax (IR) as provided for in Constitutional Amendment 132.
She also warns of the risk to the real estate and agribusiness sectors: “To convince a high-income investor to buy an LCI, they will need to receive more than they would from a CDB after deducting income tax. Today, there is a certain equivalence in rates. It may be that, down the line, these sectors will need to pay more to be able to sell the tax-exempt securities. This has the potential to increase funding costs.“ She emphasizes the urgency of planning: ”The minimum income tax is a consolidation of everything that happens during the year. It’s no use waiting until December 31 to try to do something. At the end of the year, the only thing left to do is pay.”
