Provisional Measure n° 1.171 of 2023 changes in the taxation of investiments abroad

Provisional Measure No. 1.171 (“MP 1.171/23”) was published on Sunday, April 30, 2023, updating the progressive rates of individual income tax and setting forth relevant changes in the taxation of income earned by individuals who are residents in Brazil on financial investments, controlled entities and trusts abroad, directly impacting offshore structures.
 
Although not definitive, as it should be discussed by the National Congress within 60 days, extendable for another 60 days, MP 1.171/23 provides for relevant aspects of the legislation, with a significant potential impact for Brazilians who invest abroad, directly and indirectly.
 
We summarize below the main proposed changes.

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