Confirmation | Change in Withholding Tax Rate Brazil
Following our previous announcement, (Solactive | Informative Notice | Change in Withholding Tax Rate Brazil), Solactive confirms the final implementation details for the taxation of Dividends.
In addition to the changes previously communicated, we wish to inform clients of the enactment of Complementary Bill No. 128/2025. This legislation impacts Interest on Capital (IOC) payments. The WHT rate on IOC distributions will increase from 15% to 17.5% effective January 01, 2026.
Effective January 9, 2026, Solactive will apply the following withholding tax rates to Brazilian equity distributions in its indices:
|
Type |
Current Tax Rate (%) |
Updated Tax Rate (%) |
|
Cash Dividend |
0 |
10 |
|
Interest on Capital |
15 |
17.5 |
Consistent with the transitional rules, dividends that were formally declared or announced on or before December 31, 2025, remain exempt from the new withholding tax, regardless of the payment date.
If you have any further questions, don’t hesitate to contact us.