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Homem sentado em uma mesa fazendo a declaração do imposto de renda. Em mão está segurando uma caneta preta e a outra mão está tocando uma calculadora. Na mesa tem papéis e um celular.

Brazilian Income Tax Return (IRPF)

Individuals residing in Brazil, who anually earn income above the limits informed by the Federal Revenue Service (Receita Federal), are legally obliged to submit the Brazilian income tax return, known as the Imposto de Renda de Pessoa Física (IRPF). The limits are as follows:

 

  • Taxable income above BRL 28,559.70;

  • Exempt, non-taxable income or income taxed exclusively at the source over BRL 40,000.00;

  • Income from rural activity above BRL 142,798.50;

  • Assets from BRL 300,000.00

  • Performed operations on stock exchanges, commodities, etc.

 

When is the deadline?

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The deadline for sending the declaration is always in the months of March and April of the year following the income receipt period. For example, income earned in 2021 was declared in 2022.

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Who is exempt from declaring?

 

Anyone who has not had any of the income or assets listed above, or who is listed as a dependent on someone else's declaration, and who already has their income declared by them, if any.

 

Even if not required, anyone can submit the income tax return, as long as they are not included in another declaration as a dependent. For example, if the taxpayer who is not obligated, makes the declaration, he may receive his refund.

 

For more information click HERE.

  • How to declare in Brazil a bank account that I have abroad?
    Every taxpayer residing in Brazil who owns assets in Brazil and/or abroad, of any nature, must declare them in the Annual Adjustment Declaration. It is important that any increase or decrease in equity over the years be recorded in the Statement.
  • Can I keep my tax residency in Brazil while my spouse leaves permanently?
    It is possible to maintain tax residency, as long as the declarations are made separately. In Brazil, it is possible to opt for joint or separate declaration when two people are married. When they choose to complete the Definitive Departure Declaration together, the Federal Revenue understands that both parties left on the same date. If this is not the case, the Definitive Departure Declaration must be completed separately. It is important to point out that spouses can leave the country on different dates and both the Communication and the Departure Declaration must reflect the situation correctly.
  • I didn't sell shares, do I need to declare them in my income tax?
    The obligation to declare the stock portfolio is given, regardless of whether the sale is carried out, once the individual acquires shares of stock. It is necessary to include in the DIRPF assets and rights file the number of shares and their average price, as well as which bank or brokerage firm that share is held in custody. If the taxpayer earns more than BRL 20,000.00 in shares, it is necessary to include the transactions carried out in the file dedicated to variable income movements, in the Income Tax Declaration program.
  • Do I need to declare that I am exempt?
    No. Taxpayers who do not meet the criteria for mandatory delivery of the declaration need not make any communication to the Federal Revenue regarding its non-mandatory nature.
  • Can I transfer my voters registration abroad and continue to do income tax in Brazil?
    Yes. The transfer of voters registration is not linked to the Definitive Departure Declaration, and therefore does not impact any tax liability since they are the responsibility of different bodies.
  • How to convert my income from abroad to reais in the income tax?
    According to Normative Instruction No. 208 of 2002, Article 16, Paragraphs 2 and 4, “income and tax paid abroad must be converted into United States dollars, at the amount established by the monetary authority of the country of origin of the income for the date of receipt or payment, and, subsequently, in Brazilian reals using the dollar value fixed for purchase by the Central Bank of Brazil for the last business day of the first fortnight of the month prior to the receipt of income.”. It is important to do the conversion correctly to avoid any incorrect monetary difference and even, undue payment of taxes.
  • How to convert deductions and taxes paid abroad into the IRPF?
    Also in accordance with Normative Instruction No. 208 of 2002, Article 16, Paragraphs 2 and 4, “deductions referring to payments made in foreign currency and taxes paid abroad must be converted into United States dollars, the value established by the monetary authority of the country in which the expenses were incurred for the payment date and then in Brazilian reals using the dollar value set for sale by the Central Bank of Brazil for the last business day of the first half of the month prior to the payment.”. If you are in doubt whether you performed the conversions correctly, click HERE and we can help.
  • Can the tax paid abroad be offset in Brazil?
    It is important to note that compensation can be made when there is an international agreement, treaty or convention providing for compensation, or where there is reciprocity of treatment, which is the case in the United States, Germany and the United Kingdom. Consult the countries that have an agreement to avoid double taxation with Brazil, HERE. Income tax paid abroad may be considered as a reduction of the tax due in Brazil, provided that it is not offset or refunded abroad. The tax paid in the country of origin of the income can be offset in the calculation of the monthly amount via the ‘carnê-leão’ and in the Annual Income Tax Adjustment Declaration up to the amount equivalent to the difference between the tax calculated with the inclusion of income from abroad and the tax calculated without including such income. For clients with income in the United Kingdom, we offer joint work where we transmit both statements in Brazil and in the United Kingdom, using the necessary compensation.
  • What is the difference between the ‘carnê-leão’ and the DARF?
    The ‘carnê-leão’ is a monthly statement of obligation for all taxpayers residing in Brazil who earn income as a self-employed person, paid by an individual or legal entity, as well as income from abroad paid by a legal entity or individual. The DARF (Documento de Arrecadação da Receita Federal) is the Federal Revenue Collection Document, that is, it is through the DARF that the taxpayer collects their taxes. DARFs can be generated monthly via ‘carnê-leão’, SicalcWeb or through the Annual Adjustment, Definitive Departure or Estate Statements, depending on each case.
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