Tax Effects On Dividend And Interest On Equity Policy: Conflicts Of Interest Concerning To Dividend And Agency Theories In Brazil

In an environment moving towards changes in the taxation of profit distribution, this article aims to highlight the conflicts of interest between investors and companies, discussing perspectives and key factors in shareholder distribution policies arising from tax-related disagreements. This discussion considers the importance of the tax reform debate in Brazil, covering topics such as dividend taxation and the elimination of deductibility for interest on equity (JCP). We present a theoretical and tax-based discussion backed by dividend theories and agency theory. Additionally, to illuminate theoretical approaches and research areas on dividend policy in Brazil, a mapping was conducted using the Scientific Periodicals Electronic Library (Spell) database, covering the period from 1995 to 2023, with a focus on administration, accounting, and economics. In analyzing the conceptual framework of dividend policy in Brazil, the theories suggest a need for empirical exploration of the trade-offs caused by the concentration of control effect, as decision-making often falls to majority shareholders. These shareholders, influenced by their tax profiles and/or control types, may prioritize self-interest over corporate tax concerns, potentially leading to the expropriation of minority shareholders