According to the Federal Revenue Service, anyone who received taxable income above R$$ 28,559.70 in 2019 must declare income tax in 2020.
The Federal Revenue Service announced this Wednesday (19) that the deadline for submitting the 2020 Income Tax return, base year 2019, starts on March 2 and runs until April 30.
Taxpayers who fail to file a tax return or file it after the deadline will be fined at least R$165.74, with a maximum fine of R$201.3T of the tax due.
The amount is the same as last year's income tax return. You need to file your income tax return this year. who received taxable income above R$28,559.70 in 2019.
They also need to declare:
- Taxpayers who received exempt, non-taxable or exclusively source-taxed income, the sum of which exceeded R$1,000,004 last year;
- Anyone who obtained, in any month of 2019, capital gains from the sale of assets or rights, subject to tax, or carried out transactions on stock exchanges, commodities exchanges, futures exchanges and similar exchanges;
- Anyone who, in 2019, had gross revenue exceeding R$142,798.50 from rural activities;
- The person who had, until December 31, 2019, possession or ownership of assets or rights, including bare land, with a total value exceeding R$ 300 thousand;
- Anyone who became a resident in Brazil in any month of the previous year and was still a resident on December 31, 2019;
- Someone who opted for exemption from tax on the amount obtained from the sale of residential properties whose proceeds from the sale are applied to the acquisition of residential properties located in the country, within 180 days, counting from the execution of the sales contract.
Those who choose the simplified tax return are giving up all deductions allowed by tax law, such as those related to education and healthcare expenses. However, they are entitled to a deduction of 20% from the amount of taxable income. limited to R$ 16,754.34, the same value as last year.
IR Table
The income tax table was not adjusted last year. According to information released by the government, there is no forecast for it to be updated this year either. When the table is not adjusted, more workers will end up paying taxes if their wages are adjusted for inflation.
According to the National Union of Federal Revenue Auditors (Sindifisco Nacional), from 1996 to 2019, the gap is 103%.
The Personal Income Tax table defines the income brackets on which the rates charged apply.
- Anyone earning up to R$ 1,903.98 is exempt from the charge.
- Income between R$ 1,903.99 and R$ 2,826.65 is taxed at 7.5%.
- Values between R$ 2,826.66 and R$ 3,751.05 have a charge of 15%.
- And values between R$ 3,751.06 and R$ 4,664.68 have a rate of 22.5%.
- Income above R$ 4,664.68 is taxed at a rate of 27.5%.
If the table adjustment were implemented, it would reduce the federal government's income tax withholding and primarily benefit the middle and upper classes, as they are the ones whose income is subject to taxation.