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Supplementary Law No. 224/2025: Reduction of tax benefits and taxation of interest on equity, fintechs, and betting operators
January 16th, 2026
On December 26, 2025, Brazil’s Federal Government published Supplementary Law (“LC”) No. 224, which established a linear 10% reduction in tax benefits, in addition to increasing the taxation applicable to financial technology companies (fintechs), interest on equity (“IOE”), and fixed-odds betting.
The amendments came into force on January 01, 2026, except for measures regulating the reduction of benefits and the increase in taxes subject to the 90-day entry into force period (that is, 90 days from the publication of the law).
Click here to access the full analysis on the topic.
Demarest’s Tax team is monitoring this topic and is available to provide any further clarification that may be necessary.
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