Senate Committee approves income tax exemption for up to R$ 5,000

The Senate’s Economic Affairs Committee (CAE) approved on Wednesday a proposal to increase the income tax exemption for those earning up to R$ 5,000 per month. The project also introduces an income tax discount for taxpayers earning between R$ 5,000 and R$ 7,350 per month. To offset the tax reductions, the text proposes a minimum taxation for high-income individuals, creating a progressive rate of up to 10% for those earning over R$ 600,000 per year. Unanimously approved by the Chamber in early October, the project will now move on to the Senate’s main plenary for voting. The expectation is that the text will be reviewed this afternoon.