On 22 September 2022, the federal government issued Provisional Measure 1137 (MP 1137), reducing to zero the withholding tax (WHT) levied as of 1 January 2023 on certain income earned by non-resident investors in the Brazilian financial and capital markets. The measure is part of the Brazilian government’s strategy to attract foreign investment into the country.
Foreign investments benefitting from WHT zero rate
According to MP 1137, WHT will apply at a zero rate on income earned by non-resident investors when derived from:
