The Provisional Measure (MP) No. 1,171, published on April 30, 2023, brought new tax rules for individuals who are tax residents in Brazil earning foreign income, among other provisions.
General Rule
These foreign incomes will be subject to taxation under the Individual Income Tax (IRPF) and must be reported in the Annual Adjustment Return (DAA). Such incomes are subject to the progressive rates below, without any deductions:
Note: this form of taxation does not apply to operations subject to capital gain on the sale, discharge, or settlement of assets and rights located abroad that do not constitute financial investments under the MP.
