[World Tax News] Brazil is Considering the Introduction of a New Tax on Large Fortunes and More

Editorial Team – [2026] 183 taxmann.com 378 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week:

1. Brazil is Considering the Introduction of a New ‘Tax on Large Fortunes’

Brazil’s Chamber of Deputies is currently examining a draft bill proposing the introduction of a Tax on Large Fortunes (Imposto sobre Grandes Fortunas – IGF). As stated in the bill’s explanatory memorandum, although such a tax is already contemplated under the Federal Constitution, it has not yet been implemented through legislation.

Under the proposal, the tax would apply to individuals whose total net wealth exceeds BRL 10 million, determined as of 1 January each year, subject to specified valuation rules and permitted adjustments. Liability would extend to individuals domiciled in Brazil, individuals residing abroad who hold assets in Brazil, and the estates of individuals falling within the scope of the tax.

The proposed tax would be levied on a progressive basis at the following rates:

• 1% on net assets between BRL 10,000,000 and BRL 99,999,999.99
• 2% on net assets between BRL 100,000,000 and BRL 199,999,999.99
• 3% on net assets exceeding BRL 200,000,000

The proposal further provides that certain taxes paid in the preceding year on assets subject to the IGF may be credited against the tax liability, including rural property tax, urban property tax, and vehicle tax.

Any IGF liability would be payable by the last business day of April each year. As currently drafted, the legislation would take effect on 1 January of the year following its enactment and publication in the Official Gazette.

Source – Draft Bill

2. IRS expands ‘Tax Pro Account’ to Strengthen Support for Tax Professional Businesses

The U.S. Internal Revenue Service (IRS) has announced a further expansion of the Tax Pro Account platform to strengthen support for tax professional businesses. The latest release advances the IRS’s ongoing initiatives to enhance digital services, reduce reliance on paper-based processes, and improve service delivery for taxpayers and tax professionals.

“Tax Pro account” is an IRS online account for tax professionals (such as CPAs, Enrolled Agents, and tax preparers) to manage client-related tax work online.

Tax Pro Account has expanded by introducing business-level digital capabilities for tax professionals operating within tax-preparation firms, accounting practices, and other professional organisations.

The latest enhancements provide tax professional businesses with improved visibility and administrative control over their Centralised Authorisation File (CAF) relationships. These upgrades help organisations serving large taxpayer bases manage authorisations more efficiently and reduce reliance on paper-based processes. The update also lays the groundwork for future digital expansions to support tax professionals. Sole proprietorships and businesses that do not utilise CAF systems remain unaffected by this change.

IRS CEO Frank J. Bisignano stated,

“This taxpayer-friendly enhancement improves how tax professional businesses serve their clients. It reflects the IRS’s continued investment in technology that reduces paper submissions, streamlines taxpayer interactions, and expands access to self-service digital tools.”

Key Features Introduced in This Release

Under the latest update, designated business representatives can now:

• Manage business CAF access, including determining which employees are authorised to act under the business CAF.
• Link the business CAF number to the company’s Employer Identification Number (EIN) through the Tax Pro Account.
• Access taxpayer information associated with the business CAF within the scope of valid authorisations.
• View and withdraw active authorisations on behalf of the tax professional business.

Building on enhancements introduced in 2023 and 2024, which expanded digital authorisation management and enabled professionals to act on behalf of individual clients, the current release extends Tax Pro Account functionality beyond sole practitioners to include tax professionals operating within business entities that use business CAF numbers.

About Tax Pro Account

Launched in July 2021, the Tax Pro Account offers individual tax professionals a secure and user-friendly digital platform enabling them to:

• Manage authorisation relationships with taxpayers.
• Request or link individual CAF numbers.
• View taxpayer information, including outstanding balances, payment history, and audit status.
• Make payments or establish payment plans on behalf of individual taxpayers.

Source – IRS.Gov

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