Great news for income tax returnees

Annually, individuals and legal entities, including MEI, are required to declare income tax. However, taxpayers will benefit greatly. This is a promise from President Lula, who has secured an increase in tax relief for individuals earning up to R$5,000 per month.

However, it is important to stress that the measure should not come into force in 2023. This is because the proposal has yet to be discussed over the next few years from the Lula government.

Exemption from income tax

Initially, the project aims to repair Income tax For individuals, who are completely outdated, because they haven’t kept up with inflation over the past few years. Namely, the last update of the table was made in 2015.

Delayed income tax schedule

contribution scenario Income tax It’s worrying. Low-income people are forced to pay the tax, given that the exemption range limit in the tax table is frozen at R$1,903.

This table was last corrected in 2015, when the current limits 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 the tax.

Applying this range today, when the minimum wage is R$1,320, the scale ends up forcing taxpayers who receive only 1.5 wages to file the declaration. See how the IR rate is applied according to the taxpayer’s income:

Who does not need to declare income tax in 2023?

while the Federal government The income tax exemption rules for 2023 have not been updated, and the terms described in this order will be the same as this year. Therefore, the following entities are exempted from declaring income tax:

• Workers and retirees earned less than R$28,559.70 in 2022;
• seriously ill persons, upon submission of the medical report for the exemption request;
• People who have a retirement, pension or retirement income of less than R$28,559.70.

Diseases that guarantee exemption from income tax in 2023

See the following list:

• help;
• mental alienation
• severe heart disease.
• blindness (including mono);
• Radioactive pollution
• Parkinson’s disease;
• multiple sclerosis;
• Ankylosing spondylitis.
• cystic fibrosis;
• leprosy;
• severe liver disease;
• Acute nephropathy.
• metastasis (cancer);
• osteitis
• Irreversible and incapacitating paralysis.
• active tuberculosis.

Currently, only those who earn up to R$1903.98 do not need to declare income tax. On the other hand, other Brazilians must declare IR and pay a tax rate that increases as income also increases.