Our latest newsletter provides an analysis of the key tax changes introduced by the 2025 State Budget Law, which came into effect on January 1. The document addresses the changes impacting both businesses and individuals, highlighting topics such as Personal Income Tax (IRS), Corporate Income Tax (IRC), Value-Added Tax (VAT), tax incentives, and Social Security.
Regarding IRS, notable updates include exemptions on productivity bonuses, performance bonuses, and profit-sharing, as well as significant changes to the IRS Jovem (Youth IRS) regime, which now extends the exemption period to 10 years and covers individuals up to 35 years old. Additionally, the taxable income brackets and meal allowance have been updated.
For IRC, the general rate has been reduced to 21%, and the rate for small and medium-sized enterprises (SMEs) has been lowered to 16%. Changes have also been made to the autonomous taxation on vehicle expenses and the incentive for company capitalization.
We invite you to consult the January 13 edition of “Fazemos Saber hOje”, for more details on these and other important tax updates, here.
