THE National Congress approved this Thursday (30) bill (PLN 1/2025) that allows proposed changes to Income Tax to last indefinitelyand not just for five years.
THE The main change, proposed by the federal government, is the exemption for those earning up to R$5,000 from January 2026.
In practice, the project continues with a possible exemption, which is still under analysis in Congress. The tax benefit is provided for in Bill (PL) 1,087/2025already approved in the Chamber of Deputies and awaiting a vote in the Senate’s Economic Affairs Committee (CAE).
Without the change, the exemption for those earning up to R$5,000 would only be valid for five yearsas provided for in the Budget Guidelines Law (LDO). THE text approved by parliamentarians ends this limitation.
“The proposal brings legal security to the taxpayer, as it guarantees the reliability and predictability that any change in the Personal Income Tax legislation [IRPF]whatever the outcome of the proposal in Parliament, it will not necessarily be rediscussed every five years”, argued the rapporteur, senator Professor Dorinha Seabra (União-TO).
THE project will be sent for sanction by the President of the Republic.
* With information from the House and Senate agencies
