In the early hours of December 17, 2025, the Plenary of the Chamber of Deputies approved Complementary Bill No. 128/2025, which introduces a linear 10% reduction in federal tax incentives and increases taxation on certain sectors—most notably Interest on Equity (JCP), financial institutions/fintechs, and fixed-odds betting (bets).
The bill now proceeds to the Federal Senate, where its approval is considered strategic by the Federal Government to enable the 2026 Federal Budget.
- Linear Reduction of Tax Incentives
PLP 128/2025 establishes a uniform 10% cut to federal tax benefits, incorporating proposals from the Executive Branch and the Senate, with the aim of rationalizing tax expenditures and broadening the revenue base.
Taxes and regimes affected:
- PIS/Pasep and PIS/Pasep-Importation
- Cofins and Cofins-Importation
- IRPJ and CSLL
- Import Tax (II)
- IPI
- Employer Social Security Contributions
The reduction also applies to specific regimes and incentives, including:
- Presumed Profit Regime (Lucro Presumido) (with reservations)
- REIQ (Special Regime for the Chemical Industry)
- Presumed credits of IPI, PIS, and Cofins
- Zero or reduced PIS/Cofins rates on fertilizers and agricultural pesticides
- Benefits Protected from the Reduction
The following are expressly excluded from the linear cut:
- Constitutional tax immunities
- Manaus Free Trade Zone
- Basic food basket products (zero-rate taxation)
- Incentives granted for a fixed term, where onerous conditions have already been met
- Minha Casa, Minha Vida and Prouni programs
- Tax compensation related to free electoral broadcasting time
- Industrial policy incentives, especially in the IT, communications, and semiconductor sectors
- Presumed Profit Regime: Transitional Rule
The Presumed Profit Regime is included within the scope of the reduction, limited to companies with annual gross revenue exceeding R$ 5 million.
- Simples Nacional companies (up to R$ 4.8 million) remain fully excluded.
- The threshold will be applied proportionally by assessment period and economic activity, allowing for adjustments throughout the fiscal year.
- Interest on Equity (JCP)
The bill increases the JCP tax rate to 17.5%, a measure intended to offset revenue losses resulting from adjustments to the Presumed Profit Regime and to strengthen fiscal balance.
- CSLL for Financial Institutions and Fintechs
PLP 128/2025 recalibrates CSLL rates, with a phased implementation:
- Payment institutions, exchanges, clearing and settlement entities, and similar entities:
- 12% until 2027
- 15% as of 2028
- Credit, financing, and investment companies:
- 17.5% until 2027
- 20% as of 2028
- Banks:
- 20% rate
Certain institutions—such as brokerage firms, securities dealers, card administrators, and credit cooperatives, among others—will be subject to a flat 15% rate from the first year, without phased increases.
- Fixed-Odds Betting (Bets)
Taxation on bets will be gradually increased from 12% to 15%, with an annual increase of 1 percentage point:
- 13% in 2026
- 14% in 2027
- 15% in 2028
The additional revenue will be allocated to social security, with 50% of the funds mandatorily directed to healthcare actions.
The bill also strengthens sector regulation by establishing:
- Joint and several liability of financial and payment institutions for tax collection;
- Liability of companies that advertise unauthorized operators, as a mechanism to curb irregular activity.
- Other Relevant Provisions
The rapporteur accepted amendments that:
- Tighten criminal sanctions for offenses involving assets protected by tax immunities;
- Earmark betting-tax revenues for social security, with a minimum allocation to public health.
- Final Considerations
PLP 128/2025 signals a structural shift in tax-expenditure policy, with direct impacts on corporate tax and structuring strategies, particularly in the financial, digital, and betting sectors.
Approval by the Federal Senate will be decisive for consolidating the final text and defining tax-adaptation strategies for 2026 and subsequent years.
Potentially affected taxpayers are advised to conduct a preventive impact assessment, revisiting business models, capital structures (especially JCP), and adopted tax regimes.