Income tax means the annual value discounted from income of the worker or company and delivered to the federal government, and the discount percentage is fixed by the government of each country where such tax is applied.
The tax paid by the worker is called IRPF (Income Tax on Individuals) and the annual income statement is called DIRPF (Annual Adjustment Declaration). The presentation of this declaration is mandatory for all workers who have an income above the minimum value defined by the government.
The agency responsible for collecting income tax in Brazil is the Federal Revenue. On this agency's website, it is possible to find all the documents and software necessary to prepare the income tax return. The Internal Revenue Service is also responsible for crossing the information provided by taxpayers to verify its veracity. “Thin mesh” is the popular term given to this procedure.
Income Tax Refund
When it comes to income tax refund, it means that the worker will receive a certain amount after the balance made between annual income and expenses with health, education, etc. IRPJ (Income Tax on Legal Entities) is the name of the tax paid by companies.
See the meaning of Restitution.
Who must submit income tax
According to Portal Brasil, in 2013, must submit Income Tax who in 2012:
- Received taxable income in the declaration, the sum of which was greater than R$ 24,556.65 (twenty-four thousand, five hundred and fifty-six reais and sixty-five cents);
- Received income exempt, non-taxable or taxed exclusively at source, above R$ 40 thousand, such as savings interest, earnings from financial investments, 13th salary, lottery prizes, among others;
- Obtained, in any month, capital gain on the sale of assets or rights, subject to the levy of tax, or carried out operations on stock, commodity, futures and similar exchanges;
In the case of rural activity, must submit Income Tax who:
a) obtained gross revenue in an amount greater than R$122,783.25 (one hundred and twenty-two thousand, seven hundred and eighty-three reais and twenty-five cents);
b) intends to compensate, in calendar year 2012 or later, losses from previous calendar years or from the calendar year 2012 itself;
- On December 31, he had possession or ownership of assets or rights, including bare land, with a total value exceeding R$300,000.00 (three hundred thousand reais);
- He became a resident in Brazil in any month and was in this condition on December 31st; or
- It opted for exemption from income tax levied on the capital gain earned on the sale of residential properties, whose proceeds from the sale are destined to investment in the acquisition of residential properties located in the country, within 180 (one hundred and eighty) days from the execution of the sale agreement, pursuant to art. 39 of Law No. 11,196, of November 21, 2005.