2020 IRPF: Taxpayer must be prepared to report to the Federal Revenue

While awaiting definitions on all topics and likely news for the 2020 Individual’s Income Tax Return, the taxpayer can now begin organizing the documents and proofs commonly required by the annual adjustment report.

This preparatory stage will certainly facilitate the reporting, minimizing the chances of misunderstandings and the loss of time for data transmission. Doubts may emerge, but there is still enough time to resolve them.

The period to report to the RFB has not been officially disclosed, but, as in previous years, the agency should receive them from the beginning of March and April 30.

What should change in 2020 IRPF

In the 2020 report, the employer will not longer  be able to deduct contributions made to the INSS from domestic workers.

Another issue that must be changed is the exemption limit, which must be extended. The government wants to exempt from the obligation those who earn less than BRL 3,000.00, per month.

The rate table is also likely to be updated.

In any case, the taxpayers should await the RFB disclose the Normative Instruction with the definition of the rules, deadlines and conditions to report the statement. The rules and procedures valid for 2020 IRPF are expected to be released in February.

Get organized to report the information in 2020

Find here how to begin organizing documents and vouchers to file the data for the 2019 calendar year to Revenue when the reporting period opens.

As usual, some expenses may be fully deducted - others only partially. You need to be aware of this to properly apply the deductions.

The sooner the report is filed, the sooner the taxpayer is refunded when there is a receivable credit.

Dependents’ CPF

A change introduced in 2019, the inclusion of the CPF (individual’s taxpayer registration) of all dependents is mandatory. Therefore, the document of all those to be listed in the report must be provided as soon as possible.

Reporting the Assets

Since all assets must be reported to income tax, it is necessary to gather the information required by the tax authorities.

Real Estate: purchase date, total area, full address, property tax registration (IPTU), registration number (RGI) or document proving ownership are mandatory to report.

Vehicles: the amount paid in the purchase, which does not change over the years, must be informed. The price changes are only justified in the case of improvements, such as the armoring installation.

In case of purchase or sale of real estate, vehicles and other goods, it is necessary to inform the full name of the buyer or seller, address and CPF or CNPJ and proof of purchase or sale.

Proofs of payments for deduction

Education: Keep payment proofs for school, technical courses, college, master's, doctorate, postgraduate regular for deduction provided for by law. Language courses and extracurricular activities are non-deductible for IR purposes.

Health: Gather vouchers and invoices for health plan payments and doctor visits, as well as hospitalizations and examinations by the holder and dependents. Expenses fully reimbursed cannot be deducted.

Other proofs/documents

In order to correctly fill in the report, taxpayers must have the following proofs/documents, when applicable:

• Payment proof of child support

• Rent proof (payments or income)

• Inheritance received in the period

• Donations made or received in the period

• eSocial of domestic employees

• Loans and Financing

• Purchase and / or sale of shares

Income Report

This is a document listing all amounts received by an individual from a paying source within a calendar year, proving the source of payments received in the period.

These amounts are the same reported by the paying sources to the RFB, as payments made in behalf of the taxpayer.

The income report must be made available to the taxpayer by the end of February.

Digital certificate

 

The digital certificate ensures the safety in filing data of submission, as well as making easier the verification and correction of information and following up of the report.

Those who currently have the certificate should be aware of expiration date and, if necessary, provide its renewal.

Document and voucher keeping

Remember that all documents used to prepare the income tax returns must be kept for five years, at which period the tax authority can request the proof.

Uncomplicated 2020 IRPF

The taxpayer can rely on expert guidance, from the preparation phase to the effective filing of the report. Domingues e Pinho Contadores has services to meet the obligations for individuals performed in an agile, personalized and confidential way.

With the technological progress and the growing efficiency in the RFB’s crosschecking of information, the report must be filled with attention to detail and assertiveness. In 2020, do not leave room for inconsistencies in reporting. Rely on DPC experts’ support to keep up with your tax obligations.