Will you declare income tax? Better pay attention to the changes!

During his election campaign, one of the promises of the incumbent President of the Republic, Luiz Inácio Lula da Silva (Workers’ Party), stood out. Basically, Betista promised to extend the individual income tax exemption (IRPF) to those who earn up to R$5,000 per month.

However, this long-awaited fix is ​​not expected to take place this year. The development minister, Wellington Dias, also said in November that the issue would be addressed throughout the new government. However, it is important to note that an income tax reform project is underway in the National Congress. Want to know more details about? So, see below.

Income tax declaration in 2023

Soon, the Federal Revenue Service will open the period for taxpayers to file an income tax return (DIR). The procedure is necessary and must be carried out by those who meet the requirements of the tax authorities.

According to the current rules, submission of advertisement and payment of tax is mandatory for the following audiences:

• Those who earned more than R$28,559.70 in taxable income;
• Those with exempt income above R$40,000.00 that is not taxable or exclusively taxable at source;
• Obtaining an annual gross revenue of over R$142,798.50 from rural activities;
• Those who intend to compensate losses from rural activity in these or previous years with income from these or future years;
• Those who, on December 31 of the calendar year, owned or possessed assets or rights, including bare land, above the limit (which at present is R$300,000.00);
• For those who obtained capital gains from the sale of assets or rights, subject to taxation;
• For those who have decided to be exempt from capital gains tax on the sale of residential real estate, followed by the acquisition of another, within 180 days;
• Those who conducted stock exchange operations and the like.
• Those who became residents on the national territory, in any month, and were in this state on December 31 of the calendar year.

See more: Surprise for Brazilians who declare income tax

Contribution table concerns

The income tax contribution scenario in recent years is worrying. This is because low-income people have to pay the tax, given that the exemption band limit in the tax table is frozen at R$1,903.

Namely, this table was last corrected in 2015, when the limits that are in effect to this day were also determined. However, at the time, the minimum wage was R$788, which forced only those earning more than 2.4 wages to declare taxes.

Thus, applying this range today, when the minimum wage is R$1320, the scale ends up forcing a taxpayer who would receive only 1.5 wages to declare. Provided that real earnings are applied to bonuses, the requirements are even greater.

Finally, although the income tax reform bill is being discussed in the National Congress, there is no specific change for 2023. In this sense, the contribution rules remain the same as of now.

See more: Learn what can happen if you don’t declare your income tax; Is CPF negative?