Is it allowed for Brazilian residents to defer taxes on profits from offshore entities until dividends are distributed?

Last updated on October 3, 2025

No, it is no longer allowed. Brazil’s Law 14,754/2023, effective January 2024, mandates annual taxation of profits from controlled foreign entities, regardless of distribution. This ends the previous deferral system and applies a flat 15% tax rate on accounting profits.

 

https://www.ey.com/en_gl/technical/tax-alerts/brazil-s-new-tax-law-affects-individuals-residing-in-brazil

12/12/2023

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