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Getting money out of Brazil: dividends, interest on equity (JCP), capital reduction and liquidation proceeds

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-27 · Status: Changing

Profits and capital leave Brazil without any Central Bank approval, through an FX contract with an authorized bank, once any income tax due has been paid. Since 2026 dividends sent abroad bear 10 percent withholding and JCP 17.5 percent, while IOF on the FX for dividends, JCP and return of direct investment is zero. Payments made without an FX contract, or in reais in Brazil, must be declared to the Central Bank within 30 days when US$100,000 or more.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.5007 per US dollar for 26 October 2026, the last rate published before verification. Conversions are for orientation only; the rate on the day of each FX contract will differ.

Key facts

Dividend remittance abroad needs prior approval	No, free through an authorized FX institution with proof of tax paid Lei nº 4.131 art. 9 as worded by Lei nº 14.286, as of 2026-10-27 · in force
Withholding tax on dividends remitted abroad (profits from 2026)	10 %Lei nº 9.249 art. 10 § 4, as of 2026-10-27 · in force
Withholding tax on interest on net equity (JCP)	17.5 %Lei nº 9.249 art. 9 § 2 as worded by Lei Complementar nº 224/2025, as of 2026-10-27 · in force
IOF on FX for remittance of dividends and JCP to foreign investors	0 %Decreto nº 6.306 art. 15-B XIII, as of 2026-10-27 · in force
IOF on FX for return of foreign direct investment	0 %Decreto nº 6.306 art. 15-B XVII-A, as of 2026-10-27 · in force
Prior approval to repatriate capital	No Lei nº 14.286 art. 2; Resolução BCB nº 278 art. 15, as of 2026-10-27 · in force
Banco Central do Brasil PTAX selling rate, reais per US dollar	5.5007 BRLBanco Central do Brasil PTAX, as of 2026-10-26 · in force

The rule

1. Remittances abroad of profits, dividends, interest, amortization, royalties and technical, scientific, administrative and similar assistance depend on proof that any income tax due was paid. The old registration and remittance limits of arts. 1 to 8 were repealed.Lei nº 4.131 of 3 September 1962, art. 9 as worded by Lei nº 14.286 art. 22, Art. 9, 2021-12-29 official text · verified 2026-10-27 · changed: Lei nº 14.286 repealed arts. 1 to 8 and art. 9 §§ 1 to 3 of Lei nº 4.131, effective one year after publication on 30 December 2021.

2. Profits or dividends paid, credited, delivered, used or remitted abroad bear withholding income tax at 10 percent. Exempt: profits for calendar years up to 2025 whose distribution was approved by 31 December 2025 and that are paid on the terms of the approval act; and payments to foreign governments with reciprocity, sovereign funds and foreign pension entities.
Cost to do it: 10 percent of the gross dividend.
Example: R$5,000,000 dividend: R$500,000 withheld, R$4,500,000 remitted. / US$908,975 gross, US$90,898 withheld, US$818,078 net.Lei nº 9.249, art. 10 §§ 4 and 5, inserted by Lei nº 15.270 of 26 November 2025, Art. 10 §§ 4 and 5, 2025-11-26 official text · verified 2026-10-27 · changed: Lei nº 15.270 ended, from 1 January 2026, the exemption that dividends sent abroad had since 1996.

3. Interest on net equity (JCP) bears withholding income tax at 17.5 percent on the date of payment or credit.
Cost to do it: 17.5 percent of gross JCP.
Example: JCP of R$1,000,000: R$175,000 withheld, R$825,000 remitted. / US$181,795 gross, US$31,814 withheld, US$149,981 net.Lei nº 9.249, art. 9 § 2 as worded by Lei Complementar nº 224 of 26 December 2025, art. 8, Art. 9 § 2, 2025-12-26 official text · verified 2026-10-27 · changed: Lei Complementar nº 224 raised the JCP withholding rate to 17.5 percent, from 1 January 2026 under its art. 14.

4. IOF on FX is zero for remittances of dividends and JCP to foreign investors and for the return of funds a foreign investor applied in equity stakes in Brazil.
Cost to do it: Zero IOF.Decreto nº 6.306, art. 15-B, item XIII and item XVII-A inserted by Decreto nº 12.499 of 11 June 2025, Art. 15-B XIII and XVII-A, 2025-06-11 official text · verified 2026-10-27 · changed: Item XVII-A (zero IOF on return of direct investment) was added by Decreto nº 12.499 of 11 June 2025; its validity rests on the STF injunction of 16 July 2025 in ADC 96.

5. Remittances of profits, dividends, JCP and return of capital through an FX contract are captured automatically by SCE-IED. Distributions, JCP, sales to residents, capital returns and liquidation proceeds paid directly abroad or in reais in Brazil, and capitalizations of profits, dividends and JCP, must be declared within 30 days when US$100,000 or more.Resolução BCB nº 278, as amended by Resoluções BCB nº 348/2023 and 410/2024, Arts. 32, 35 and 36 VI, 2024-09-11 official text · verified 2026-10-27

6. From 1 October 2026 a company in Brazil with direct non resident equity, and its foreign parent, may hold foreign currency accounts in Brazil that move only direct investment and external credit funds; moving foreign currency into or out of them needs no FX contract.Resolução BCB nº 277, art. 70 XIV and XVI, sole paragraph, and art. 75-B, inserted by Resolução BCB nº 575 of 18 June 2026, Arts. 70 and 75-B, 2026-06-18 official text · verified 2026-10-27 · changed: New from 1 October 2026.

Route	Withholding	IOF on FX	Net in reais	Net in USD at R$5.5007
Dividend from 2026 profits	10 percent	Zero	R$900,000	US$163,616
Dividend from 2025 profits approved by 31 Dec 2025, paid as approved	Zero	Zero	R$1,000,000	US$181,795
JCP	17.5 percent	Zero	R$825,000	US$149,981
Return of capital (capital reduction)	Not a distribution of profit; gains, if any, taxed separately	Zero	Depends on basis	Depends on basis

Cash out on R$1,000,000 of distributions to a foreign parent (Lei nº 9.249 arts. 9 and 10; Decreto nº 6.306 art. 15-B).

Worked example

A Brazilian subsidiary approves R$5,000,000 of dividends from 2026 profits (US$908,975). It withholds R$500,000, pays the tax and gives the bank the proof (Lei nº 9.249 art. 10 § 4; Lei nº 4.131 art. 9). The FX contract for R$4,500,000 (US$818,078) bears zero IOF and SCE-IED captures it (Decreto nº 6.306 art. 15-B XIII; Resolução BCB nº 278 art. 35). If instead the subsidiary pays JCP of R$1,000,000, it withholds R$175,000 and remits R$825,000 (US$149,981), and the JCP is deductible for the company within the legal limits (see Interest on equity). Whether the parent can credit Brazilian tax depends on its home country and any treaty (see Tax treaties).

Step by step

1. Approve the distribution in the corporate act (quota holders' or shareholders' meeting) and record the year of the profits.
2. Withhold 10 percent on dividends from 2026 profits, or 17.5 percent on JCP, and pay the tax (Lei nº 9.249 arts. 9 and 10).
3. Give the bank proof of tax paid and the SCE-IED code; the FX contract is classified as profit, dividend or JCP remittance (Lei nº 4.131 art. 9; Resolução BCB nº 278 art. 21).
4. If paying abroad, in reais in Brazil or by capitalizing, declare it in SCE-IED within 30 days when US$100,000 or more (art. 36).
5. For capital return, reduce capital under the corporate law steps, then remit with zero IOF (Decreto nº 6.306 art. 15-B XVII-A).

Common traps

Paying 2025 profits late or on different terms. The exemption covers only distributions approved by 31 December 2025 and paid on the terms of the approval act (Lei nº 9.249 art. 10 § 5 I).
Assuming JCP is still taxed at 15 percent. The rate is 17.5 percent from 2026 (Lei nº 9.249 art. 9 § 2).
Paying the parent directly abroad and forgetting SCE-IED. Payments outside an FX contract must be declared within 30 days (Resolução BCB nº 278 art. 36).
Relying on the zero IOF for capital return without checking the decree in force. IOF rates change by decree and the 2025 rules rest on an STF injunction issued ad referendum.
Applying Argentine assumptions. Unlike Argentina's history of access restrictions, Brazil needs no prior approval to send dividends; plan the Argentine leg of any group flow under Argentina's own rules (see The Argentine Thread guide).

Sources

Related: Brazil country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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