MP Rapporteur Alternative to IOF will maintain exemption for LCIs and LCAS

Deputy Carlos Zarattini (PT-SP), rapporteur of Provisional Measure 1.303, known as the “MP Alternative to IOF”, decided to preserve the exemption of income tax for real estate credit letters (LCIS) and agribusiness credit letters (LCAS). The information is from S.Paulo Folha and from Economic value.

The government had suggested a 5% tax on these titles to the measure sent to Congress. Initially, the rapporteur raised this rate to 7.5%, but has now decided to maintain the exemption.

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The change aims to ensure the approval of the text, which expires next Wednesday (8). The MP vote on the Joint Congress Commission that discusses the text is scheduled for Tuesday (7), after being postponed twice due to lack of consensus.

The agribusiness bench, which advocated the maintenance of the exemption for the LCAs, was one of the main obstacles to the approval of the proposal.

Read more: brokers question MP 1.303 for risk of restricting negotiations, says newspaper

According to SheetIn addition to the LCIs and LCAs, Zarattini should also maintain exemption to other securities, such as real estate receivables (CRIS) certificates, agribusiness receiving certificates (CRAS) and encouraged debentures.

The MP text includes the rise of taxes on fintechs, bookmakers, crypto and other segments, as well as creating a temporary program to regularize virtual assets with reduced income tax payment.

The Provisional Measure seeks to raise federal revenue by about R $ 20.87 billion to the year 2026, compensating for the government’s withdrawal to increase the IOF (Tax on Financial Operations).