Income Tax 2024: check who is entitled to exemption – 03/18/2024 – Market

Taxpayers who received up to two minimum wages in 2023, retirees and INSS (National Social Security Institute) pensioners aged 65 and over and retirees with a serious illness provided for by law are among the citizens who may be exempt from Income Tax 2024.

As a result, they do not pay tax to the Federal Revenue and, in some cases, may be exempt from declaring IR 2024.

Being exempt means that part or all of the taxpayer’s income is not subject to tax deduction, but it does not automatically lead the citizen to not submit the declaration. There are other rules that may require shipping.

The deadline for reporting began on Friday (15) and runs until May 31. Anyone who misses the deadline pays a minimum fine of R$165.74, which can reach 20% of the tax due for the year.

Retirees and pensioners over 65 are entitled to an extra monthly exemption from the month in which they celebrate their birthday. This means that, in addition to the standard exemption given to all workers, there is an even higher limit for these citizens.

The benefit is valid for official social security income, paid by the RGPS (General Social Security Regime) or regimes specific to states, municipalities and the Federal District.

The update to the Income Tax table did not bring an update to the exemption for those over 65 years of age. In 2023, the exemption limit was up to R$24,751.74 (12 installments of up to R$1,903.98 plus the 13th salary).

If the citizen only has this income and does not comply with other Revenue rules, he or she will not need to declare income tax.

Retirees with a serious illness must have the exemption registered with the IRS or with the Social Security agency itself. To declare the benefit, you must have the INSS income report, which details all the income received during the year, and can be obtained on Meu INSS or on the extractir.gov.br website.

WHO HAS THE RIGHT TO EXEMPTION FOR SERIOUS ILLNESS?

The exemption in social security benefits is provided for in law 9,250, of December 26, 1995, and includes income such as temporary incapacity benefit (formerly sickness benefit), accident benefit, permanent incapacity retirement (formerly disability retirement) that is resulting from an accident on duty and benefits granted to those with occupational illnesses or serious illnesses.

The IR exemption on the benefit for those who are retired and have a serious illness only occurs after the insured person undergoes an INSS examination. 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 will have to present medical reports proving the right.

SEE THE SERIOUS ILLNESSES THAT GIVE THE RIGHT TO EXEMPTION FROM IR

• Active tuberculosis
• Mental alienation
• Multiple sclerosis
• Cancer
• AIDS
• Blindness
• Leprosy
• Irreversible and disabling paralysis
• Severe heart disease
• Parkinson’s disease
• Ankylosing spondyloarthrosis
• Severe nephropathy
• Advanced stages of Paget’s disease (osteitis deformans)
• Radiation contamination
• Cystic fibrosis (mucoviscidosis)
• Severe liver disease
• Thalidomide Syndrome

How to declare the exempt portion of retirement?

The amounts for taxpayers over 65 years of age are in line “10 – Exempt portion of retirement benefits, remunerated reserve, retirement and pension of declarant aged 65 or over”.

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

Wesley Santiago, tax specialist at Macro Contabilidade e Consultoria, explains that the exemption also covers other income of the taxpayer. Anyone who receives a donation or inheritance, for example, does not need to pay income tax, they only pay the state tax relating to the amount, if it exceeds the limit.

Amounts received from FGTS (Service Time Guarantee Fund), compensation for accidents at work and other funds linked to professional activity, but which are compensation, also do not pay tax.

Who must declare Income Tax 2024?

Taxpayers who:

• Received taxable income above R$ 30,639.90, which includes salary, retirement and pension from the INSS or public bodies; in previous years, the limit used was from R$ 28,559.70

• Received exempt, non-taxable or taxed income exclusively at source above R$ 200 thousand

• Obtained in any month a capital gain (i.e. profit) on the sale (transfer of ownership) of goods or rights subject to tax; This is the case, for example, of selling a car for a value greater than that paid when purchasing it.

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

• Made sales on the Stock Exchange that, in total, exceeded R$40 thousand, including if exempt. And those who made a profit from the sale of shares, subject to tax (amounts up to R$ 20 thousand are exempt)

• On December 31, he had possession or ownership of assets or rights, including bare land, worth more than R$800 thousand

• Obtained gross revenue from rural activity worth more than R$ 153,199.50

• Do you want to offset losses from rural activity in 2023 or previous years?

• He started living in Brazil in any month of 2023 and was in this condition on December 31st

• Chose to declare assets, rights and obligations held by offshore companies

• Holds trusts and other contracts governed by foreign law

• Choose to update assets and rights abroad at the market value of December 2023, as long as you pay 8% capital gain

What is the Income Tax table?

The monthly or annual Income Tax discount table is a guide so that taxpayers know from what amount they are obliged to pay the tax and who is exempt from IR.

MONTHLY INCOME TAX TABLE 2023 FROM JANUARY TO APRIL

Calculation basis (in R$)	Tax rate (in %)	Portion to be deducted (in R$)
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

MONTHLY INCOME TAX TABLE 2023 FROM MAY

Calculation basis (in R$)	Tax rate (in %)	Portion to be deducted (in %)
Up to R$ 2,112.00	–	–
From R$ 2,112.01 to R$ 2,826.65	7.5%	R$ 158.40
From R$2,826.66 to R$3,751.05	15.0%	BRL 370.40
From R$3,751.06 to R$4,664.68	22.5%	BRL 651.73
Above R$4,664.68	27.5%	BRL 884.96

ANNUAL INCIDENT OF INCOME TAX 2024 (CALENDAR YEAR 2023)

Calculation basis (in R$)	Tax rate (in %)	Portion to be deducted (in %)
Up to R$24,511.92	–	–
From R$ 24,511.93 to R$ 33,919.80	7.5%	R$ 1,838.39
From R$33,919.81 to R$45,012.60	15.0%	BRL 4,382.38
From R$45,012.61 to R$55,976.16	22.5%	R$ 7,758.32
Above R$55,976.16	27.5%	R$ 10,557.13

How do I know if I should declare?

One of the main points is to add up the tax income received during the year. Tax income includes salaries, retirement, self-employed income and property rental, for example. If the annual amount exceeds the IRS income limit, you must declare it.

There are also other rules, such as having received exempt and non-taxable income above R$200,000 in the year. FGTS (Service Time Guarantee Fund) is an example of non-taxable income.

Anyone who has assets and rights — including property and a car, for example — above R$800,000 is also required to declare. The value to be used is that of the purchase of the good.

See the Income Tax refund calendar

The IR 2024 refund will be paid in five batches, the first being on May 31, the last day of the deadline for submitting the declaration. Lots run until September. There is a priority list for payment, which follows this order:

• Elderly aged 80 or over
• Elderly people aged 60 or over, and people with disabilities and serious illnesses
• Taxpayers whose biggest source of income is teaching
• Taxpayers who used the pre-filled declaration and/or chose to receive the refund via Pix
• Other contributors

Batch	Pay day
1st batch	may 31st
2nd batch	June 28
3rd batch	July 31
4th batch	August 30
5th batch	September 30th

How will income tax installments be paid?

If the taxpayer has tax to pay, he will have until May 10th to inform the IRS that he wishes to pay the single installment or the first installment by automatic debit. To do this, he will have to send the declaration and indicate the option. After this date, the tax can only be paid through the IRS.

The deadline for payment in a single installment or the first installment will be May 31st. The other installments will be paid on the last business day of each month.

See the schedule:

• Option for automatic debit of the 1st installment or single installment: May 10th
• Expiration of the first quota or single quota: May 31st
• Due date for other quotas: last business day of each month, up to the eighth quota on December 30th
• Payment of the Darf donation to the fund for children, adolescents and elderly people: until May 31st, without installments

What are the main documents for declaring Income Tax?

Companies, financial institutions and public bodies had until February 29th to submit their income report for 2023. In addition, the taxpayer can now gather other documents to start organizing the IR declaration, such as receipts and notes for medical and health expenses. education, proof of purchase and sale of vehicles or properties last year, among others.

“The first care that taxpayers have to take is to obtain documentation and sort through everything they will need”, says Valdir Amorim, from IOB.

List of basic documents:

The taxpayer needs a delivery receipt for the last Income Tax declaration and to have some personal and registration documents on hand, such as:

1. Voter ID
2. CPF of dependents, alimony and spouse
3. Proof of residence
4. Proof of occupancy
5. INSS extract
6. Salary receipts
7. Current or savings account statement
8. Investment report
9. Receipts, invoices and proof of IR deductible expenses