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New Taxation of Dividends May Make Luís Barsi, the “Brazilian Warren Buffett,” Pay More Than R$ 100 Thousand Per Day in Taxes on Stock Profits, Understand.
In a recent report published on the Nord Investimentos portal, a calculation was raised that has been generating unease in the market: under the new dividend taxation proposal, mega-investor Luís Barsi could pay more than R$ 100 thousand per day in taxes. This figure arises from the context that in 2023, Barsi would have received dividends amounting to R$ 1 million per day, amounts that were previously tax-exempt. With the new rule under discussion, which establishes a rate of 10% for dividends exceeding certain thresholds, the scenario changes for high-income investors.
Who Is Luís Barsi and Why Is He a Reference in This Debate
Luís Barsi Filho is recognized as one of Brazil’s largest individual investors, often referred to as the “Brazilian Warren Buffett.”
His strategy favors companies that pay consistent and high-return dividends, building wealth through the reinvestment of profits over decades.
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The Brazilian passport allows legal residence in dozens of countries without the need for a prior visa, and most Brazilians are unaware that they can apply for residency directly upon arriving in nations in South America, Africa, and even Europe.
Therefore, when a proposed law aims to tax dividends — which were previously exempt — Barsi becomes a symbolic case: he is among the most affected by the rule if it comes into effect as currently proposed.
What Changes With the Taxation Proposal
Currently, in Brazil, dividends distributed by companies to individuals are exempt from Income Tax.
The proposal currently in the Congress, especially the Bill 1.087/25, provides that dividends exceeding R$ 50 thousand per month for the same investor and from the same company will be taxed at 10% at the source. For amounts below this threshold, dividends will remain exempt.
According to disclosed calculations, for the taxable floor to be reached, the investor would need to have millions of reais invested in the same stock or company.
Furthermore, the bill proposes that dividends become part of the tax base for a minimum rate on high incomes: that is, even those who do not exceed the monthly limit may face taxation through aggregated earnings.
How the “Over R$ 100 Thousand Per Day in Taxes” Figure Came About
The calculation disclosed by Nord considered the premise that Barsi would continue receiving the high dividends he had in 2023 (around R$ 1 million per day), now with a 10% tax.
If this is confirmed, the daily tax would reach around R$ 100 thousand, which is 10% of R$ 1 million.
It is important to highlight that this scenario is a simulation based on past data and does not necessarily reflect Barsi’s actual or future dividends, especially in light of changes in profit distribution or strategic adjustments made by companies.
Reactions of Barsi and the Market
At an event called AGF Day, Barsi commented on the possible impacts of taxation on dividends. According to him, the dividend yield is already indirectly taxed by corporate taxes, and taxing again would be unfair.
He also mentioned that in the past, when dividends were already taxed in Brazil, many companies sought alternatives, such as stock buybacks or payment via interest on equity (JCP) — which incurs a 15% income tax already for individuals.
On the Seu Dinheiro portal, experts demonstrate that the majority of investors will not be affected by the new rule, as it applies only to high dividends (above R$ 50 thousand monthly from the same company).
The Strategic Risk for Long-Term Investors
The taxation proposal may profoundly change how investors structure their portfolios. Those receiving consistent dividends from a single company may start distributing investments or switch to JCP or buybacks — strategies to circumvent the new tax burden.
If the taxation is approved as proposed, there will be effects on the valuation of companies that pay high dividends, on the attractiveness of securities, and on the decision to reinvest profits.
What Needs to Happen for the Rule to Take Effect
- The Bill 1.087/25 needs to be approved in the Senate and sanctioned by the President of the Republic to take effect.
- The taxation will only apply to dividends distributed starting in 2026, according to the texts under discussion.
- The precise definition of how the collection will be made (on the total, on the excess, offsets, annual declaration) still depends on regulations from the Federal Revenue Service.
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