The Brazilian Senate approved Bill 1087/25 on 5 November 2025, which includes several tax measures for individuals. This includes:
- The introduction of a new monthly tax reduction, providing a full reduction (zero tax payable) on monthly taxable income up to BRL 5,000, and a partial reduction on taxable income between BRL 5,000.01 to BRL 7,350, which is reduced linearly so that no reduction is provided for taxable income starting from BRL 7,350;
- The introduction of a new annual tax reduction…