Come-cotas: what it is, how it works, and how much income tax is deducted from your funds

If you invest in investment funds, you may have noticed that, in certain months of the year, the value of your shares drops slightly even though you haven't redeemed anything. This discount has a name: come-cotas (literally, "share-eater"). It is the advance collection of income tax, carried out automatically twice a year by the fund's administrator.

In short: on the last business day of May and of November, income tax applies to the appreciation of your shares, even without a redemption. In this guide, you'll understand how come-cotas works, how much is deducted, which funds it applies to — and which ones it doesn't — and why it doesn't necessarily mean paying more tax in the end.

What is come-cotas

Come-cotas is the periodic income tax taxation applied to investment funds subject to the periodic regime. In practice, the fund's administrator automatically deducts income tax on the appreciation of the shares on the last business day of May and of November each year. Because the tax is deducted directly from the shares, you end up with "fewer shares" after each occurrence — hence the nickname.

It's important to understand that this is not an extra fee or a penalty: it is simply a way of advancing the income tax collection that would, in any case, be due when you redeemed the money.

How come-cotas works in practice

The mechanism is simple:

1. The fund appreciates over the semester.
2. On the last business day of May and of November, the administrator calculates the income tax on that appreciation.
3. The tax is deducted automatically, reducing the investor's number of shares.
4. At redemption, only any remaining difference is charged, according to the final rate applicable to the investment's holding period.

For an individual resident in Brazil, the amount withheld semiannually is definitive: it does not come back as a refund in the annual income tax return. What can happen is a complementary charge at redemption, if the final rate is higher than the amount already withheld.

How much is deducted

The come-cotas rate depends on the type of fund:

At redemption, the regressive table for long-term funds applies, which has four brackets:

Since the semiannual come-cotas on long-term funds already withholds 15%, redeeming before 720 days generates a complementary charge to reach the rate in the regressive table. If you redeem after 720 days, there is no difference to pay, because the final rate (15%) has already been reached through the semiannual withholdings.

For short-term funds, the redemption table is different: 22.5% for holdings up to 180 days and 20% for holdings above 180 days.

Numerical example (hypothetical)

Suppose a long-term fund with R$ 10,000 invested and 8% appreciation over the semester (illustrative assumption — past performance does not guarantee future returns):

• Appreciation: R$ 800
• Come-cotas at 15%: R$ 120
• Shares after the deduction: equivalent to R$ 10,680

Note that the tax applies to the period's gain, not to the total amount. And, since income tax has already been partially withheld, at a future redemption you pay only any difference up to the rate in the regressive table.

Which funds are subject to come-cotas (and which are not)

Come-cotas applies to funds subject to periodic taxation, which is the general rule. The following are outside this regime:

• Equity funds (FIA): taxed at 15% only at redemption;
• Variable-income ETFs: income tax applies when shares are sold;
• FIIs (real estate funds): have their own taxation (20% on income and gains on sale), but no come-cotas.

This means that, in these products, the tax "waits" for you to sell or redeem — there is no automatic semiannual deduction from the shares.

One important exception introduced by Law 14,754/2023, in force since 2024: closed-end funds that were previously exempt from periodic taxation — such as infrastructure funds (FI-Infra), FIPs and certain closed-end credit rights funds (FIDCs) — now face an annual come-cotas in December. If you invest in these products, be aware that the semiannual May/November schedule described above does not cover them, but an annual deduction does.

Is come-cotas bad for the investor?

Not necessarily. Since come-cotas is an advance on the tax, the main effect is compounding returns on a slightly smaller amount (you "lose" the compound interest earnings on the tax paid in advance). Over long periods, this effect tends to be small; over short periods, there may be a complementary charge at redemption.

The real point of attention is comparing the total tax across investment alternatives, considering the holding period, the final rate and the product type — not merely the presence or absence of come-cotas.

Common mistakes about come-cotas

• Thinking it's an extra fee charged by the bank or brokerage: it is income tax, collected by the administrator as required by law.
• Believing the withheld amount comes back as a refund: for individuals, the semiannual withholding is definitive.
• Confusing the come-cotas rate with the redemption rate: come-cotas is 15% (long-term) or 20% (short-term); redemption follows the four-bracket regressive table.
• Avoiding funds solely because of come-cotas: the impact depends on the holding period and on the comparison with alternatives.

FAQ

Does come-cotas apply to CDBs and Treasury Direct (Tesouro Direto)? No. Come-cotas is exclusive to funds subject to periodic taxation. CDBs and Treasury Direct charge income tax only at redemption, under the regressive table. To compare these options, see our guide on CDB, Selic Treasury, or savings accounts and the article on how much R$ 1,000 earns in a CDB.

Do I need to declare come-cotas on my income tax return? Fund income and balances must be reported in your annual return, according to the Brazilian Federal Revenue Service's guidelines. If you invest, it's worth reviewing our guide on Income Tax 2026: declaring investments.

Does come-cotas apply to equity funds? No. Equity funds, variable-income ETFs, and FIIs are not subject to come-cotas; income tax applies at redemption or when shares are sold.

Does come-cotas reduce my returns? It advances the income tax, reducing the shares that remain invested. The effect on the final return is usually small and depends on the holding period and the final redemption rate.

Conclusion

Come-cotas is the semiannual income tax collection on investment funds, carried out automatically by the administrator on the last business day of May and of November. It works as an advance payment: at redemption, you pay only any difference according to the regressive table — and, for individuals, the semiannually withheld amount is definitive. Since 2024, Law 14,754/2023 has also extended an annual December come-cotas to certain closed-end funds. Understanding this mechanism helps you compare funds with other fixed-income options and fit them into a well-planned investment portfolio, especially for those starting to invest.

Disclaimer: this content is educational and does not constitute individual investment advice. Tax rules follow the cited legislation (Law 14,754/2023, Laws 11,033/2004 and 11,053/2004) and may change.

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summary: EN version produced from approved PT-BR with Critical Review Final corrections incorporated (Law 14,754/2023 annual come-cotas for closed-end funds; short-term redemption rates). Numbers, rates, tables, FAQ, caveats, disclaimers and internal links preserved.
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