Currently, the Income Tax (IR) schedule is outdated in Brazil. The last update was in 2015. Since then, a lot has been said about who will or won’t get an exemption in this year’s announcement. With this, a question arose among taxpayers: Would the President guarantee exemption from international relations for some taxpayers?
This suspicion arises because Luiz Inácio Lula da Silva (PT) has promised that he will increase the exemption for this year given the delay in the schedule, which has accumulated at 147.87%. If the president does not keep his promise, the same schedule as last year will apply, which we will show here. It is important to remember that the declaration period always begins on the first business day of March and ends on the last business day of April.
Promises during the election campaign
The same promise to increase the income tax exemption package was made by the two candidates who went to the second round in the 2022 elections: Lula (PT) and former President Jair Bolsonaro (PL). However, in order for this increase to occur, the Individual Income Tax Schedule (IRPF) must first be updated.
According to the rules currently in force, people who earn more than R$ 1903.98 per month must contribute to the tax. However, this amount was set in 2016, when the minimum wage in force at that time was R$880, and the current minimum wage is R$1,302. Therefore, this contribution must also be made by persons who receive a little more than one and a half minimum wages.
Faced with this situation, many entities and even representatives criticize the current valid income tax declaration schedule, in which Brazilians with low incomes must file the declaration, when they were previously exempt from contributing to the IR.
Despite the promise, Lula’s government has not yet made any proposal to change the income tax schedule, so that exemption is guaranteed to more people. Moreover, Finance Minister Fernando Haddad has hinted in recent statements that this is not a priority in this first year of government. But nothing has been officially announced yet.
The President guarantees exemption from income tax for these taxpayers
If Lula’s government decides to readjust the schedule, the president will guarantee exemption from income tax for taxpayers receiving a salary of up to R$4,719.34. In doing so, more than 30 million people will be exempt from making the announcement.
However, since nothing has been reported yet, the current schedule is valid. Those receiving up to R$1903.98 are exempt from income tax declaration. On the other hand, those receiving between R$1903.98 and R$2826.65 must pay R$142.80 to the IR.
People with salaries between R$ 2826.66 and R$ 3751.05 must pay R$ 354.80. If the salary ranges from R$3751.06 to R$4664.68, the tax payment will be R$636.13. If the salary is higher than R$4,664.68, the fee charged to the IR is R$869.36.
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