Law approves changes to income tax levied on investments in FIPs

Law 14,711/23, enacted by the Federal Government, implemented changes to the legal requirements related to the levy of the withholding income tax (“WHT”) on investments in Private Equity Investment Funds (“FIPs”). The new legislation also amended the rules regarding the composition of the fund’s portfolio, the percentage of quota holder participation, the qualification of funds as investment entities, and the extension of the tax benefit to foreign sovereign wealth funds.

Click here or the image below to access the detailed document on this topic.

For more information on the other changes brought by the new rule, click here.