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NEW STANDARD CLARIFIES TAXATION ON GAINS IN THE FINANCIAL AND CAPITAL MARKETS

The IRS issued a normative instruction that explains the rules of the Income Tax (IR) on gains in the financial and capital markets. The standard includes suggestions made by the market and clarifies questions, according to a statement yesterday by the local authority. Normative Instruction No. 1637, published in the Official Gazette, updates the No. 1585, 2015.

The new text regulates the tax liability of traders in securities in the case of distribution of investment fund shares held for the account of third parties. According to the IRS, the theme was query object and was included in the statement for consolidation purposes – Consultation Solution Cosit 38, of 19 April. The standard also clarified that, in transactions on the stock exchange, does not apply to income tax withholding (of 0.005%) in the case of exempt transactions.

The new normative instruction, according to the organism, also deals with other issues. One of them provides that the income produced by investments where there is a link with a third-party credit operation (eg, CDB pledged to a third-party loan) are subject to the incidence of Income Tax Withheld at Source (IRRF).

It also allows fixed income investment funds to consider the quotas of Fixed Income Exchange Traded Funds (ETF Funds) for the medium term counting purposes of their portfolios of assets, in order to classify them as short-term or long-term funds. In the case of ETF funds, the normative instruction aims to clarify the market doubts about the applicable rates when there is declassification in the following situations: to rescue quotas and to distribute any value and disposal of shares in the secondary market.

2017-09-18T16:15:30+00:00 28/06/2016|Latest news|