FINANCIAL MOVES
Ahead of new income tax rules, firms front-load dividends
Companies are trying to dodge the bite of the recently approved income tax reform. Photo: Andrii Yalanskyi/Shutterstock
Companies in Brazil are rushing to announce tens of billions of reais in dividends ahead of a reform that, as of next year, will tax these earnings for the first time since 1996.
At least BRL 68 billion (USD 12.4 billion) in dividends and interest on equity payments have been announced in Q4 2025 by companies listed on the São Paulo stock exchange, according to investment bank BTG Pactual. Roughly BRL 35 billion of that amount consists of “extraordinary” dividends, but the bank’s analysts said much of the remaining volume also appears to have been brought forward to avoid future taxation.
BTG estimated that the companies it covers held…
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