Yesterday, 29 November 2023, in an Ordinary Deliberative Session of the Plenary of the Federal Senate, the Final Draft of Bill of Law 4,173/2023 was approved, which provides for the taxation of income earned by Brazilian tax residents (individuals) in financial investments, controlled foreign entities and trusts abroad, as well as the taxation of closed-end funds (included in the Preliminary Opinion of the Plenary of the Chamber of Deputies on 3 October 2023).
In more detail
The Bill now goes to the President of the Republic, Luiz Inácio Lula da Silva, for sanction within 15 days. If the bill is sanctioned in 2023, the law will take effect on 1 January 2024.
The main changes addressed by the Bill of Law vis a vis the current rules, are addressed in our previous legal alerts about the taxation of foreign assets and taxation of Brazilian closed-end funds, as well the final wording approved by the Chamber of Deputies.
We are waiting the official publication of the final approved Bill by the Senate to provide further comments, as appropriate.