Income Tax 2023: who is entitled to exemption? – 03/15/2023 – Market

Retirees and pensioners from the INSS (National Social Security Institute) from the age of 65 are among the taxpayers who may be exempt from Income Tax. With this, they do not pay the tax to the Federal Revenue and, in some cases, may be exempt from declaring the IR 2023.

The exemption is valid for official pension benefits paid by the RGPS (General Social Security System) or by the systems of states, municipalities and the Federal District.

The rule also includes retirees with a serious illness provided for by law, insured persons who receive sickness benefits and beneficiaries of accident benefits. Citizens with taxable income up to R$ 22,847.76 are also exempt from the tax, as well as those who received inheritance, donation and other exempt and non-taxable income in an amount below R$ 40 thousand.

The deadline to declare the 2023 Income Tax begins this Wednesday (15) and runs until May 31. Anyone who delivers the pre-filled statement or chooses to receive the refund via Pix enters the refund priority queue. Retirees over 60 are also priority contributors.

How does the Income Tax exemption work?

The exemption is a tax benefit guaranteed by law that prevents the IR deduction at source or exempts the taxpayer from paying the Darf (Federal Revenue Tax Collection Document). Workers in general who receive up to the annual exemption limit of the table, of R$ 22,847.76 do not pay tax. Above this value, they need to pay.

Being exempt from Income Tax, however, does not mean that the taxpayer is exempt from declaring the IR. According to experts, if it fits other rules for sending the declaration, the citizen will have to send the declaration, under penalty of paying a fine to the Revenue, in case it delays the sending.

MUST DECLARATE INCOME TAX WHO, IN 2022:

• Received taxable income above BRL 28,559.70, which includes salary, retirement and pension from the INSS or public bodies

• Received exempt income, non-taxable or taxed exclusively at source (such as savings income or FGTS) above BRL 40,000

• Had a capital gain (ie, profit) on the sale (transfer of ownership) of goods or rights subject to the levy of tax; This is the case, for example, of the sale of a car with a value greater than the amount paid for the purchase.

• Was exempt from IR on capital gain on the sale of residential properties, followed by the acquisition of another residential property within 180 days

• Carried out operations on the stock, commodity, futures and similar exchanges, the sum of which was greater than BRL 40,000 or with gains subject to the levy of tax

• Had, on December 31, possession or ownership of assets or rights, including bare land, in excess of BRL 300,000

• Obtained gross revenue in rural activity in an amount greater than R$ 142,798.50

• Want to offset losses from rural activity in 2022 or previous years

• He moved to Brazil in 2022 and was in that condition on December 31, 2022

ANNUAL INCOME TAX TABLE

Calculation basis (in BRL)	Rate (in %)	Installment to be deducted (in BRL)
Up to 22,847.76	–	–
From 22,847.77 to 33,919.80	7.5	1,713.58
From 33,919.81 to 45,012.6 0	15	4,257.57
From 45,012.61 to 55,976.16	22.5	7,633.51
Above 55,976.16	27.5	10,432.32

MONTHLY INCOME TAX TABLE

Calculation basis (in BRL)	Rate (in %)	Installment to be deducted (in BRL)
Up to 1,903.98	–	–
From 1,903.99 to 2,826.65	7.5	142.80
From 2,826.66 to 3,751.05	15	354.80
From 3,751.06 to 4,664.68	22.5	636.13
Above 4,664.68	27.5	869.36

Who is entitled to the serious illness exemption?

According to the INSS, the exemption in social security benefits is provided for in Law 9,250, of December 26, 1995, and includes income received as aid for temporary incapacity (formerly sickness aid), accident aid, retirement for permanent incapacity ( old disability retirement) resulting from an accident at work and benefits granted to people with occupational diseases or serious illnesses.

The IR exemption on the benefit for those who are retired and have a serious illness occurs only after the insured undergoes an inspection at the INSS. The expert examination can be scheduled on the Meu INSS app or website or by calling 135. In addition to the CPF number and other personal documents, the insured person will have to present medical reports that prove the right.

See the SERIOUS DISEASES THAT GIVE THE RIGHT TO THE IR EXEMPTION

• active tuberculosis
• mental alienation
• Multiple sclerosis
• Cancer
• aids
• Blindness
• Leprosy
• Irreversible and disabling paralysis
• severe heart disease
• Parkinson’s disease
• ankylosing spondyloarthritis
• severe nephropathy
• Advanced stages of Paget’s disease (osteitis deformans)
• radiation contamination
• Cystic fibrosis (mucoviscidosis)
• severe liver disease
• Thalidomide Syndrome

How does the exemption for retirees aged 65 or over work?

According to the Revenue rule, retirees and pensioners from the age of 65 are entitled to an extra exemption from Income Tax from the month in which they have their birthday. There is a right to exemption only on retirement and pensions from federal, state and municipal public bodies, or from the Federal District, up to the limit of R$ 24,751.74 per year.

By law, upon turning 65, in addition to the normal exemption of BRL 1,903.98 per month, retirees or pensioners are entitled to one more exemption in the same amount, which means that, in 2022, they only paid Income Tax on benefit who earn more than R$ 3,807.96 per month.

To declare the benefit, the retiree must have the INSS income report, which contains in detail all the income received in the year, and can be obtained at Meu INSS or at the website extractir.gov.br. The amounts go in line “10 – Exempt portion of retirement income, remunerated reserve, retirement and pension of declarant aged 65 years or more”.

It is necessary to inform the type of beneficiary, that is, if the amount to be declared belongs to the holder or the dependent, his name, the name and CNPJ of the paying source, the total amount and the 13th salary.

WHAT IS THE DEADLINE TO DELIVER THE IR DECLARATION?

The deadline for declaring the IR runs from 9:00 am on March 15th to 11:59 pm on May 31st. Completion and delivery of the declaration are done in the same program. The Federal Revenue’s computers receive the declarations almost 24 hours a day, with a break between 1h and 5h for system maintenance.

It is important to respect this final limit of accountability, because those who delay and were obliged to declare pay a fine. The minimum amount is BRL 165.74, but it can reach 20% of the tax due in the year

HOW DO I DECLARE INCOME TAX?

The first step is to download the 2023 Income Tax program on your computer. From this Wednesday, it is possible to complete and deliver on other platforms as well. The second step is to fill in all the necessary forms, such as taxpayer identification, income, assets and rights, in addition to payments made and debts, if any.

Afterwards, the taxpayer needs to check the data and make sure of the best type of declaration, whether it is for legal deductions or simplified discount. Filling errors lead to fine mesh.

WHAT HAPPENS TO THOSE WHO DO NOT DECLARE?

Taxpayers obliged to declare that they do not deliver the Income Tax pay a fine of 1% per month on the amount of tax due in the year, which can reach 20% for those who have tax to pay. The minimum fine is R$ 165.74 for taxpayers who have no tax to pay.

In addition, the CPF is “Pending regularization”, according to the Federal Revenue Service. In this case, the person may have problems with bank accounts, issuing passports, social programs and loans, among others.

Amorim points out that the citizen can still fall into the “fine mesh” and the tax authorities can investigate the entire financial situation of the taxpayer, in addition to the risk of being accused of tax evasion.

HOW DO I KNOW IF I HAVE AN INCOME TAX REFUND?

When filling out the declaration, the program will show if there is tax to be paid or refunded. Choose the best option before submitting the IR, whether by legal deductions or the simplified model. This information will be on the left side of the IR computer program below.

WHEN WILL I RECEIVE THE IR 2023 REFUND?

Taxpayers with tax to be refunded who choose to receive the values ​​per Pix in the 2023 Income Tax return will enter the Federal Revenue’s refund priority list and will have the money before. The same rule applies to those who, in 2023, opt for the pre-filled IR statement.

THE LIST OF PRIORITIES WILL BE AS FOLLOWS:

• Elderly aged 80 years and over
• Elderly aged 60 years and over and people with a disability or serious illness
• Taxpayers whose main source of income is teaching
• Taxpayers who used the pre-filled statement and/or opted to receive the Pix refund (novelty)
• Other taxpayers

DATES OF BATCHES OF REFUND OF INCOME TAX 2023

Batch	Pay day
1st	may 31st
2nd	June 30
3rd	July 31st
4th	August, 31
5th	September 29th

HOW LONG DOES IT TAKE TO PAY INCOME TAX?

Taxpayers who have tax to pay can pay it in up to eight installments. The Darf (Tax Collection Document) is paid month by month, but it is also possible to place the payment in automatic debit from the first installment. For this, it is necessary to declare the IR until May 10.

EXPIRATION OF INCOME TAX SHARES

Dates for those who have tax to pay

• Option for automatic debit of the first installment or single installment: until May 10
• Maturity of the 1st installment or single installment: until May 31
• Maturity of other quotas: last business day of each month, until the eighth quota on December 28
• Darf payment for those who donate tax to child, adolescent and elderly funds: until May 31