Our lawyers Júlia Vituli and Thiago Braga have written an article for Correio Braziliense’s Law & Justice section. The text reflects on the tax treatment of shareholders in Equity Investment Funds (FIPs) in Brazil.

“Despite the rough seas faced by tax experts regarding the interpretation given by the tax authorities to this treatment since then, the calm, conferred both by the Legislative Branch and by the latest decisions handed down by the Administrative Council for Tax Appeals (CARF), signals a genuine concern for the legal security of investors.

From the investors’ point of view, FIPs are attractive because they allow them to actively participate in the decision-making process of their investees, in accordance with CVM Resolution 175. From a tax point of view, as a rule, FIP shareholders are subject to income tax at a rate of 15% on income and capital gains on the sale, redemption or amortization of shares.”

Read in full: https://lnkd.in/dB9cnABe