TLDR
- Brazil’s Federal Revenue Service expects R$4.4 billion from new taxes on fintechs, betting operators, and interest on equity
- Changes to the CSLL tax on financial institutions will generate R$1.1 billion, with traditional banks facing a 20% rate
- Interest on equity taxation rises from 15% to 17.5%, expected to bring in R$3.1 billion
- Betting sector GGR tax increase estimated to yield R$260 million in new revenue
- Brazil’s GDP growth forecast lowered to 2.33% for 2026, while inflation expectations rose to 3.74%
Brazil’s Federal Revenue Service has outlined a package of tax reforms projected to generate R$4.4 billion in new revenue. The measures target fintech companies, betting operators, and interest on equity payments.
Robinson Barreirinhas, the country’s Secretary of the Federal Revenue, confirmed the revenue projections as part of the government’s broader fiscal strategy.
The largest chunk of new revenue is expected to come from changes to the Social Contribution on Net Profit, known as CSLL. These changes are aimed squarely at financial institutions.
Traditional banks will face a CSLL rate of 20%. Credit, financing, and investment companies will pay 17.5% until 2027, then 20% starting in 2028.
Financial Sector and Fintech Companies Face Higher Tax Rates
Other institutions, including clearinghouse and over-the-counter exchange administrators, will be taxed at 12% until 2027. That rate will increase to 15% from 2028 onward.
The CSLL changes alone are expected to yield R$1.1 billion. The fintech industry is a primary target of the new policy.
Interest on equity, known as JCP, will see its tax rate rise from 15% to 17.5%. This applies at the time of payment or credit to beneficiaries.
The JCP change is the biggest single revenue driver in the package, projected to bring in R$3.1 billion.
The betting sector will also see higher taxes. The increase in Gross Gaming Revenue taxation is estimated to generate R$260 million.
Brazil’s regulated betting industry continues to grow as a source of tax revenue for the government.
Budget Pressures and Economic Forecasts for 2026
Beyond these specific measures, the government has also reduced broader tax benefits. That reduction is estimated to have a fiscal impact of R$16.5 billion in 2026, down from a previous estimate of R$19.8 billion.
The total combined impact of all fiscal policies is projected at R$20.9 billion for the year.
The government has forecasted a primary surplus of R$3.5 billion. That figure falls R$30.8 billion short of the central target of R$34.3 billion.
To stay within budget rules, the Ministry of Planning and Budget has frozen R$1.6 billion in discretionary spending. Without any adjustments, the government would face a deficit of R$59.8 billion.
The government said deductions totaling R$63.4 billion will help it reach a positive balance. These include court-ordered payments, national defense spending, and temporary expenditures in education and health.
Revenue projections have held steady in part due to rising income from oil royalties. Non-administered revenues increased from R$160.4 billion to R$177.1 billion.
Tax-administered revenues dipped slightly from R$2.041 trillion to R$2.032 trillion. Mandatory primary expenditures rose by R$18.9 billion to R$2.392 trillion.
The Ministry of Finance now expects GDP growth of 2.33% in 2026, down from a prior forecast of 2.44%. Inflation expectations have risen to 3.74%, up from 3.60%.
The government has not needed to implement contingency measures at this point.
