Income Tax 2023: allowance, rate and deduction; understand the terms

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Know the most common terms in the IR declaration; Submission deadline starts on Wednesday (15) and runs until May 31. Income Tax 2023: understand the main terms. Art / g1 On Thursday (9), the Federal Revenue released the download of the program for the 2023 Income Tax declaration. KNOW ALL ABOUT INCOME TAXES Check the g1 glossary for descriptions of the most common terms: Cash allowance: It is the option that the worker has to convert ten days of his vacation period into payment. Equity increase: It is the increase in wealth justified by the income of a certain individual or taxpayer. Alienation: It is the transfer of a good or right to the name of another person. Disposal of assets and rights: It is characterized as purchase and sale, exchange, expropriation, donation in payment, donation, promise of purchase and sale, assignment of rights or promise of assignment of rights and related contracts. Alienation of foreign currency: These are alienation operations made in the currency of another country. Gains in reais obtained on the disposal are subject to definitive taxation. Alimony: These are children of divorced parents, legally separated or by public deed, who receive alimony. Rate: In tax law, rate is the percentage or fixed amount that will be applied on the calculation base to determine the value of a tax. Calendar-year: It is the year before the current year. If we are in 2023, the calendar year will be 2022. Financial application: It is the amount deposited in a financial institution in order to obtain income. Rural activity: Agriculture, livestock, plant and animal extraction and exploitation, zootechnical activities, fishing or products using raw material from the exploited area such as cheese production. Calculation base: In tax law, the calculation base is the economic magnitude on which the rate is applied to calculate the amount of tax payable. Assets and Rights: Property, car, motorcycle, music copyright or technological innovation patent, for example. Real estate: House, land, room, shed, shop, apartment, building, for example, in urban or rural areas. Movable goods: That can be transported, such as a car, motorcycle, plane, boat, artwork and jewelry. Carnê-Leão: It is the mandatory monthly tax for individuals residing in the country and receiving income from another individual or from abroad, when not taxed at source in Brazil. The most common profiles that fit the Carnê-Leão are, for example, professionals, self-employed, landlords and pensioners. CNPJ: The National Register of Legal Entities (CNPJ) is a unique number that identifies a legal entity with the Federal Revenue Service. Proof of income: It is the document with which a person proves that he has income. Employer contribution: It is the payment made by the employer to Social Security, levied on the amount of the employee’s remuneration. Taxpayer: Is the taxable person of a tax obligation. In common terms, it is the one who must, by legal provision, pay taxes to the Treasury. Incapable taxpayer: Persons who cannot personally perform legal acts or transactions. In this case, the declaration is the responsibility of the guardian or person responsible for the legal custody of the incapable person. Emancipated minor taxpayer: Is that taxpayer who, even without having reached the age of 18, has the rights and duties of an adult citizen. Tax credit: In tax law, it is the legal bond that obliges the taxpayer or responsible person (taxable person) to the State (active subject) to pay the tax or pecuniary penalty. Darf: Federal Revenue Collection Document is the document used by individuals and legal entities to pay taxes, contributions and fees to the Federal Revenue Service. Day Trade: Operation in which a share is bought and sold on the same day. IRPF Annual Adjustment Declaration: It is the full name of the Income Tax declaration. This is the document that the individual submits to the Federal Revenue Service of Brazil. Declaration using legal discounts: It is the type of IRPF declaration that allows you to deduct certain income tax expenses. It is ideal for those who have deductions that exceed 20% of annual income. Joint statement: It is the statement presented on behalf of one of the spouses, covering all the couple’s income. By Revenue rules, this declaration is valid for officially married people, who are in a stable union for at least five years, or who have a child in common, even if they are not officially married. Declaration of assets and rights: It is the part of the annual adjustment declaration, where the real estate, movables and rights that were part of the assets on December 31 of the calendar year are listed in detail. Rectifying statement: The rectifying statement is the instrument that the individual sends to the Federal Revenue of Brazil to replace the annual adjustment statement delivered with inaccuracies. Declaration with the simplified discount: It is the declaration that implies the substitution of the deductions foreseen in the tax legislation by the 20% discount of the value of the taxable income in the declaration. Deduction: Action of deducting; subtract; to decrease; shoot down. In the case of the IR, expenses that reduce the basis for calculating the tax due can be deducted. Incentive deduction: It is the deduction made from the tax due, limited to 6%, referring to the Child and Adolescent Statute, incentive to culture, Audiovisual activity and sport. And another 2%, 1% for the National Support Program for Health Care for People with Disabilities (Pronas/PCD) and 1% for the National Support Program for Oncology Care (Pronon). Deductibility: The action of being able to deduct the expense that reduces the calculation basis of the Income Tax. Dependent: Person who does not have the resources to promote their subsistence and who lives at the expense of another. In the income tax return, it is informed as dependent on who holds it. Debts and real encumbrances: Debt or loan that the taxpayer has in the country or abroad, contracted from an individual or legal entity. Donation: It is the contract, gratuitous and formal, in which a person, by his own will, transfers goods or advantages in his name to another person. Emolument: Emolument is the income of a position, in addition to the fixed salary. Loot: Goods someone left behind when they died. It is the total of assets and rights that belonged to the deceased. Equity evolution: These are all the alterations suffered by the equity in its qualitative and/or quantitative composition. Suspended enforceability: Dispute in court in which the payment of income tax is made by judicial deposit. FGTS: It is the fund created in 1967 by the federal government to protect the worker dismissed without just cause, through the opening of an account linked to the employment contract. Paying source: Paying source is the individual or legal entity that made the payment of income to the taxpayer. Capital gain: It is the positive difference between the value of the sale of an asset or right and the value for which it was acquired. Honorary: It is the remuneration of those who exercise a liberal profession: lawyer, doctor, etc. Payable tax: It is the positive difference between the calculated tax and the paid tax Tax to refund: It is the negative difference between the calculated tax and the paid tax Complementary tax: It is the optional income tax collection that the taxpayer can anticipate until the month of December of the calendar year, when you have received income from more than one paying source. Due tax: It is the value of the tax calculated before offsetting the tax withheld at source and paid by the carnet-leão. Income tax withheld at source: It is the tax that is deducted from the taxpayer’s income by the paying source. INSS: It is an autarchy of the federal government that receives contributions for the maintenance of the general Social Security system, being responsible for the payment of retirement, death pension, sickness allowance, etc. Inventory: Is the person who administers the assets of a deceased person while the division of assets is not judged. Income Tax Exemption: It is the exemption from the payment of tax in cases that are guaranteed by law. Exempt from Income Tax: Is the one released, dismissed or exempt from paying the tax. Legatee: Is the person benefited by the will of a deceased. Deduction limit: It is the limit set by law to limit deductions that reduce the tax calculation basis. Cash book: It is the book in which the taxpayer can deduct the allowed expenses from the income arising from the exercise of the activity, that is, the expenses necessary to carry out the activity Nature of occupation: It is the type of activity that a given individual performs: service or work , whether manual or intellectual. Cash: Currency, cash. The amount or sum of money that a person has in cash. Main occupation: It is the main activity carried out by a given individual, whether manual or intellectual work. Real encumbrance: It is an obligation that limits the usufruct and disposition of the property, and that falls on movable or immovable things, by virtue of real rights over other people’s things. Equity participation: Possession of quotas or shares of a company. Alimony: It is the amount fixed by the judge or public deed that must be met by the responsible person, for the maintenance of the children and or the other spouse. Exchange: It is the act in which the contracting parties exchange or exchange among themselves things of their property. Natural person: Man or woman to whom rights and obligations are attributed. Legal Entity: Set of norms for the protection and defense of the worker or employee, through retirement, protection against illness, montepios, etc. Private pension: Private pension, also called supplementary pension, is a form of insurance contracted to guarantee future income to the buyer or his beneficiary. Pro-labore: Latin expression meaning for work; remuneration for the work performed by a partner, manager or administrators of a company. Declaration Receipt: It is the document that proves the effective delivery of the Individual Income Tax declaration. Income: It is the amount received, during a certain period, as remuneration for work or services rendered, or as profit from commercial or financial transactions, capital investments, etc. Gross income: All the product of labor capital, food and pensions received in cash; earnings of any nature. Own income: It is the remuneration received in the name of a certain individual/taxpayer. Exempt income: Is that which does not suffer the collection of income tax, as they have exemption guaranteed by law. Non-Taxable Income: This is the same as exempt income. Accumulated Earnings: Income that the taxpayer has earned all at once, after waiting for a long time. Examples: retirement, pension, precatories and transfer to the remunerated reserve. Taxable income: Is that from salaried work; remuneration for work performed in the exercise of employment, positions and functions, and any perceived earnings or advantages, rents, interest, etc. Income taxable exclusively at source: Income subject to IR taxation at the time of receipt. Exclusive/definitive taxation: It is when the income tax withheld at source cannot be compensated in the annual declaration. Stable union: Is that between a man and a woman unencumbered by the bonds of marriage or separated in fact. G1 in 1 Minute: Federal Revenue announces rules for income tax return

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