Imposto sobre ganho de capital in Brazil: how gains on shares are taxed
Brazil taxes gains on a rising scale: 15% on the first R$5,000,000, 17.5% up to R$10,000,000, 20% up to R$30,000,000, and 22.5% above R$30,000,000. Each rate applies only to the slice of the gain inside its band. The holding period does not change the rate, and there is no annual tax-free amount.
The gain is sliced into bands rising from 15% to 22.5% (Law 13.259/2016). Most disposals stop at the first band, 15%. Small share sales and reinvestment in a home have separate exemptions.
| Gain up to | Rate on this slice | Total tax at the top of the band |
|---|---|---|
| R$5,000,000 | 15% | R$750,000 |
| R$10,000,000 | 17.5% | R$1,625,000 |
| R$30,000,000 | 20% | R$5,625,000 |
| above R$30,000,000 | 22.5% | — |
Tax on share gains of different sizes
Because the bands stack, the effective rate stays below the top rate: 20.63% on R$60,000,000.
| Gain | Tax | Effective rate | Kept after tax |
|---|---|---|---|
| R$25,000 | R$3,750 | 15% | R$21,250 |
| R$5,000,000 | R$750,000 | 15% | R$4,250,000 |
| R$10,000,000 | R$1,625,000 | 16.25% | R$8,375,000 |
| R$30,000,000 | R$5,625,000 | 18.75% | R$24,375,000 |
| R$60,000,000 | R$12,375,000 | 20.63% | R$47,625,000 |