Submission of Complementary Bill No. 05/2026 to the Chamber of Deputies: the Possibility of Establishing a Wealth Tax (IGF)

Originally published on the 26th day of February, 2026

In early January of this year, the Chamber of Deputies received Complementary Bill No. 05/2026, whose main purpose is to establish a new tax: the Wealth Tax (Imposto sobre Grandes Fortunas – IGF).

The legislative bill arises as a response to the constitutional mandate set forth in Article 153, VII of the Federal Constitution of 1988, which provides:

"Art. 153. The Federal Government has the power to impose taxes on:

VII - large fortunes, as provided by complementary law."

In the terms of the text submitted to the Chamber, the IGF will be owed by taxpayers whose net worth exceeds R$10,000,000.00 (ten million reais) on the first day of January of each fiscal year.

To determine the value of the assets and rights that constitute an individual's net worth, the bill establishes specific criteria for each type of asset. Thus, the value of: (i) shares and equity interests traded on the stock exchange will be determined by the closing price on the last business day of the previous fiscal year; (ii) shares and equity interests not traded on the stock exchange will be determined by the market value of the assets comprising the company's net worth; (iii) jewelry, precious metals, and works of art will be assessed through a periodic appraisal, carried out under specific regulations; and (iv) other assets and rights will be valued according to their respective market values.

The following will be considered IGF taxpayers: (i) individuals domiciled in Brazil; (ii) individuals residing abroad, with respect to assets located in Brazil; and (iii) estates, with respect to the assets and individuals mentioned above.

As for the tax rates, the bill provides for progressive taxation proportional to the value of the net worth, according to the table below:

Some other taxes may be deducted from the IGF, such as the Rural Land Tax (ITR), the Motor Vehicle Property Tax (IPVA), and the Urban Property and Land Tax (IPTU) — provided that they are levied on the same assets and rights that constitute the net worth taxed by the IGF. Finally, regarding the payment method, the bill provides that it must be made by the last business day of April.

Since this bill is in an early stage of development, it is highly likely that the text will undergo significant changes throughout the legislative process. It should also be noted that, for complementary laws, the approval process is more complex and requires a greater degree of political consensus among lawmakers. In any case, if approved by the Chamber of Deputies, the bill will be forwarded to the Federal Senate and, subsequently, to the presidential sanction. Regardless, this initiative should not be underestimated when considering future tax and wealth planning strategies for individuals with significant assets.

Lorusso & Partners continues to closely monitor the progress of the bill and remains available to clarify any relevant questions, as well as to develop customized tax, wealth, and succession planning strategies.