Will INSS retirees have a new benefit? Bill (PL) No. 36/2023, which provides for the exemption from proof of illness to obtain exemption from Income Tax (IR) for pensioners and retirees, surprised Brazilians. Many of these citizens have to fight serious illnesses and still have to prove their health status to avoid having to pay taxes. The objective of the PL is to prevent similar situations from continuing to occur in Brazil.

New INSS benefit for retirees

The good news is that PL nº 36/2023 stipulates that INSS pensioners and retirees who are already exempt from paying IR no longer need to prove that they are sick to maintain their exemption. Currently, there is legal confusion on this matter, with some citizens potentially losing their exemption if they do not prove that they are still sick or that the disease is not yet under control.

According to Brazilian legislation, some retirees with serious illnesses may be exempt from paying income tax. This includes illnesses such as tuberculosis, multiple sclerosis, cancer, and AIDS, even if contracted after qualifying for Social Security benefits.

The author of the project is federal deputy Marangoni (União – SP), which was based on a decision by the Federal Supreme Court (STJ) in 2018 on the topic. In the decision, the judges stated that “the taxpayer has the right to grant or maintain the IR exemption without having to prove the presence of symptoms of illness or disease”.

Marangoni believes that the STJ's decision should guarantee pensioners and retirees the right to not need to prove illness to maintain their exemption. However, it states that it is necessary to approve PL nº 36/2023 to avoid contrary interpretations in the future. “It is necessary to consolidate understanding through law”, he stated.

Benefits of the measure

The decisions of the STJ and PL nº 36/2023 are important to guarantee the rights of retirees and pensioners, especially those fighting serious illnesses. The exemption from proof of illness for exemption from Income Tax brings relief to these citizens who are often already going through difficult times due to illness.

Furthermore, the approval of PL nº 36/2023 can bring greater legal certainty to these citizens. Confusion about the need to prove illness can be harmful for retirees and pensioners who are already exempt from paying Income Tax. With the approval of the PL, this situation should be resolved.

The project also seeks to bring more transparency and agility to the process of granting income tax exemptions to retirees and pensioners with serious illnesses. Currently, many of these citizens face bureaucratic difficulties in obtaining the exemption, which can worsen their health even further.

PL 36/2023 proposes that proof of illness be made only once and from then on the exemption will be granted automatically. This means that the retiree or pensioner would no longer need to go through the annual exemption renewal process, which can be quite stressful and expensive.