News on Income Tax Declaration

March has arrived, and as Brazilians say, the year has begun! At the beginning of every year, the accountability to the Federal Revenue Service takes place through the declaration of the Individual Income Tax (IRPF). The deadline for submission for those required to declare is from March 15 to May 31.

According to tax law specialist João Paulo Lyra from the law firm Pagotto Rizzato e Lyra Sociedade de Advogados, this year some new features have been created to make life easier for taxpayers. “The Federal Revenue Service has improved the pre-filled declaration, changed the rules regarding the obligation to declare variable income, and altered other details, such as receiving refunds via PIX,” explains the lawyer.

“To give you an idea, the pre-filled declaration changed the start date for submitting the IRPF, which was always at the beginning of March, to the 15th, precisely so that it would be available on the first day of submission of declarations,” Lyra explains.

The other novelty that pleased taxpayers was the refund method via PIX CPF key. “Those who choose this method will have priority in the payment queue along with others who already have priority, such as the elderly, teachers, etc.,” says the lawyer.

There are rules for declaring income tax, and not everyone is required to declare. Below, see who must declare.

• Individuals residing in Brazil who received taxable income above R$ 28,559.70 in the year, or about R$ 2,380 per month, including salaries, pensions, and rents must declare income tax in 2023;
• Those who received exempt, non-taxable, or exclusively taxed at source income above R$ 40,000; and who obtained, in any month, capital gains from the sale of assets or rights subject to tax;
• Those who carried out operations on stock exchanges, commodities, futures, and similar markets are only required to declare if, in the calendar year, they had a total of sales, including exempt ones, exceeding R$ 40,000; and operations subject to tax;
• Regarding rural activity, citizens who obtained gross revenue exceeding R$ 142,798.50 must also declare; those who intend to offset losses from previous calendar years or from the current calendar year; and those who owned or had possession of assets or rights, including bare land, totaling more than R$ 300,000 as of December 31.

(Source: Federal Government Website – Ministry of Finance)