Opportunity to do good: use your Income Tax to support charitable actions

Individuals can use their main annual tax obligation to do good

When preparing the income tax return, the taxpayer has the option of donating part of the tax withheld to social initiatives instead of simply directing it to the government.

The rules allow part of the amount due to be donated to institutions that aid children and the elderly, and support sports, culture, and health. The funds can be donated to national, state, or municipal causes.

The list of funds that can receive the taxpayer's donation is in the generator program itself, so it is possible to choose a fund, but not a particular entity.

After deciding, the system will issue a Federal Revenue Collection Document (Darf), which is payable by the last day set for filing the statement, April 30th.

Taxpayers who file a complete tax return are entitled to the donation in 2021 DIRPF.

Donation deduction limits

Taxpayer who did not make deductible donations throughout 2020

The IR regulation enables the taxpayer to make donations after the end of the base year. Thus, it is possible to get a deduction now, at the filing of the 2021 DIRPF, for donations limited to 3% of the tax due.

In this situation, the donation must be directed to the funds listed in the IR program.

Taxpayer who made deductible donations throughout 2020

Donations made by the taxpayer throughout 2020 can also be deducted from the 2021 DIRPF, in which case, the limit is 6% of the tax due.

This is a way for individuals to more directly support a project authorized to raise this type of fund.

In case of not reaching the overall limit of 6%, new incentives are yet possible. For example, if the taxpayer had already deducted 4% last year, a further 2% may also be deducted by directing the tax to a fund selected in this tax return.

Experts in solutions for the Individual

Domingues e Pinho Contadores has a division for individuals specialized in guiding taxpayers in all the steps and stages of the income tax return, including the treatment of complex situations and special cases. Count on this support to complete and transmit DIRPF 2021.