Income Tax: Survey by the National Association of Tax Auditors (Unafisco) shows that around 20 million Brazilians should be exempt from income tax. This would be the exemption level if the contribution table were adjusted annually based on inflation.

The income tax table has not been regularly updated since 1994, when the real plan was implemented. The last correction was in 2015. The tax was postponed for eight years, which harmed Brazilian workers.

Without updating the Income Tax table, workers who receive R$ 1,903.98 per month are exempt from tax. Unfortunately, this is the reality of only 8.9 million Brazilians. If the correction occurred regularly, the tax would be free for 29.7 million taxpayers.

With no change to the income tax table, the estimated revenue for this year is R$ 403.6 billion. If all inflation were accounted for, the country would collect R$ 167.3 billion, around R$ 236 billion less. This drop in revenue explains the government's difficulty in implementing changes to IR.

Who is entitled to exemption from Income Tax?

When it comes to being exempt from paying income tax, there are some specific cases that need to be observed. Are they:

Serious diseases

Persons suffering from the following serious illnesses, provided that they receive income exclusively from a pension, pension, old-age pension (in the case of military personnel) or other social security benefits:

• AIDS;
• Mental alienation;
• Severe heart disease;
• Blindness (including monocular);
• Radiation contamination;
• Parkinson's disease;
• Multiple sclerosis;
• Ankylosing spondyloarthrosis;
• Cystic fibrosis;
• Leprosy;
• Severe liver disease;
• Severe Nephropathy;
• Malignant neoplasm (cancer);
• Osteitis deformans;
• Irreversible and Disabling Paralysis;
• Active tuberculosis.

It is worth noting that the patient cannot carry out any paid activity. If you do, you will lose your exemption.

retired

From the age of 65, the elderly person is exempt from income tax if the sum of social security income reaches R$ 24,751.74 per year. If this amount is exceeded, the excess is taxable.

Remember that the pensioner is exempt from tax and not from declaration. If you meet the criteria established by the federal tax authorities, which requires you to declare, even when exempt from income tax, the taxpayer must send an annual declaration.

Dependents

If you appear as a dependent on someone else's declaration, you are exempt from declaring and paying income tax, as the person who will pay the tax on your behalf will be the declarant.

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