O Income tax (IR) is a federal tax levied annually on the income and capital gains of individuals and corporations in Brazil. Taxpayers are required to declare their annual income and assets to the Internal Revenue Service, which uses this information to calculate the amount owed. The IR rate varies according to the taxpayer's income, being higher for higher incomes and lower for lower incomes.
The 2023 Income Tax declaration season should open in March. Those who do not declare or pay the IR correctly may suffer sanctions and fines imposed by the IRS. Know more!
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To carry out the IR declaration, you need to provide some necessary documents. Are they:
- CPF;
- Proof of residence;
- Voter title;
- Last income tax return (if any);
- Account number and bank branch for refund deposit;
- Name, CPF and date of birth of dependents and spouse (if any).
The Federal Revenue also requires the CPF of dependents, even if they are minors. However, if any of the dependents still do not have the document, it is necessary to request it as soon as possible at the Post Office, Caixa Econômica Federal or even at Banco do Brasil.
In addition to these documents mentioned, other documents are required:
- Income reports from financial institutions, such as banks and brokerages;
- Income from all paying sources; as well as income information for the spouse (if it is a joint statement) and dependents (if any), in addition to the supplementary pension information (if any);
- If you receive rents or income abroad, you must have proof of the monthly payment of the carne-leão.
There are several types of expenses and allowable deductions that can be subtracted from gross income to arrive at income. These expenses include:
- Education expenses up to the limit of BRL 3,561.50;
- Receipts and invoices for medical and dental consultations, laboratory and radiological examinations, devices and prostheses and health plans;
- Proof of payment of supplementary pension, as well as judicial alimony;
- Proof of donations made or received in Brazil or abroad and collected ITCMD.
Other required documents are:
- Brokerage notes for variable income operations (if applicable);
- Proof of rent payments or rural leasing;
- Payment receipts for self-employed professionals such as lawyers, engineers, architects, brokers, teachers, etc.;
- Proof of purchase and sale of goods, as well as receipt of inheritance;
- Contracts referring to loans, consortia or financing.
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