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IR: Check the deadline for the 2023 income tax return

The deadline for submitting the 2023 Income Tax declaration is approaching. Taxpayers have until May 31 to submit their returns , so those who haven’t yet filed should hurry to avoid fines and penalties.

Income Tax is a mandatory annual tax levied on the income of individuals and companies. In the case of individuals, it is necessary to declare income tax every year if the taxpayer received taxable income above a certain amount stipulated by the Federal Revenue Service.

Who needs to declare income tax?

In general, every individual who had taxable income above R$28,559.70 in 2022 must declare the Income Tax in 2023. In addition, other situations that make the declaration necessary are:

  • Received taxable income above BRL 28,559.70 in 2022.
  • Carried out operations on stock exchanges or in the capital market, the sum of which was greater than R$40,000 or with calculation of net gains subject to the incidence of tax;
  • Had possession or ownership of assets or rights, including bare land, with a total value greater than R$ 300,000.00;
  • Started living in Brazil in any month of 2022 and stayed here as a resident until December 31;
  • Obtained in 2022 capital gain on the sale of assets or rights, such as real estate, subject to the levy of tax.
  • Received more than R$142,798.50 in rural activities or have rural losses to be compensated in the calendar year of 2022 or in the coming years.

Had taxable or non-taxable income above BRL 40,000.00 in 2022.

How to declare income tax?

Before knowing what amount should be paid, we need to talk about three points that need to be taken into account. They are: calculation basis, rate and portion to be deducted.

Calculation basis: These are the taxable income of the taxpayer, that is, amounts received such as wages, rent, pension, remuneration for work, investments, etc.

Rate: This is the percentage charged on your earnings. The income tax rate is progressive: the more you earn, the higher the rate.

Portion to be deducted: Amount subtracted from your income for calculating the tax to be proportional to your earning range. Now, we need to understand which monthly income range you fit into!

What are the Income Tax rates?

The table for the 2023 Income Tax declaration has not changed. The rates for individuals vary according to the taxpayer’s income. In 2023, the rates remain as follows:

  • Up to BRL 1,903.98: exempt
  • From R$1,903.99 to R$2,826.65: 7.5% (R$142.80)
  • From R$2,826.66 to R$3,751.05: 15% (R$354.80)
  • From R$3,751.06 to R$4,664.68: 22.5% (R$636.13)
  • Over BRL 4,664.68: 27.5% (869.36)

After that, the taxpayer must access the Federal Revenue program available for download on the agency’s website and fill in the requested information. Remember to have all the necessary documents at hand, such as income statements, bank statements, proof of expenses , among others. Taxpayers can declare their income and expenses for the year 2022 from March 15th. The deadline ends on May 31.

How to declare the Brazil Aid in the Income Tax?

  • If you fit into any of the Income Tax declaration requirements and received the Brazil aid last year, continue reading to read the step-by-step guide on how the benefit must be declared.
  • In the Income Tax filing program, look for the “Taxable income received from a legal entity” tab.
  • If the aid was received by you, choose the “Holder” tab. If it was received by any of your dependents, then open the “Dependants” tab.
  • Then click on “New” and enter the number: 05.526.783/0003-27 in the “CNPJ” field. The paying source is the Ministry of Citizenship.
  • In the “Income received from a legal entity” field, enter the total amount of the aid received in 2022, fill in the other fields on the form with a value of zero and finish by clicking “OK”.

Taxpayers who miss the deadline for submitting the declaration will be subject to fines ranging from R$165.74 to 20% of the tax due, plus interest. In addition, failure to submit the statement can lead to other consequences, such as blocking the CPF, which can prevent various financial activities from being carried out.

Need help filing your Income Tax? Leave it to us!

Headquartered in São Paulo and Fortaleza, but operating directly in several states of the country, we are certain that we are adding value to new clients, helping them through business accounting to further develop their businesses. We have a select team composed of more than 25 accounting professionals, continuously trained and post-graduated in several areas of activity to better meet the demands of our Clients.

If you are having difficulties with your company’s accounting, don’t waste time and talk to our customer service now. Be another company positively impacted by our service !!!Talk to one of our attendants directly via Whatsapp

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