Tax review: how it works and what benefits it entails
21/08/2023Federal Revenue Service limits Withholding Income Tax deductions reported on DCTFWeb
09/09/2023HIGHLIGHTS
Law that sets new minimum wage as of May 1, 2023 and adjusts income tax brackets has been enacted
On August 28, Law No 14,663/2023 was published in the Federal Official Gazette of Brazil. The act, which resulted from Provisional Presidential Decree No 1,172 being signed into law, sets the country’s new minimum wage at BRL 1,320.00 (one thousand three hundred and twenty Brazilian reais), effective as of May 1, 2023. Likewise, the minimum daily and hourly wages have been set at BRL 44.00 (forty-four Brazilian reais) and BRL 6.00 (six Brazilian reais), respectively.
The new provisions also added Subsection X to Law No. 11,482/2007 to adjust the tax brackets for the monthly progressive income tax rates, effective as of May 2023. The income tax thresholds have been adjusted according to the following table:
|
Taxable income bracket (in BRL) |
Tax rates (%) |
Deductible from Income Tax (in BRL) |
|
Up to 2,112.00 |
0 |
0 |
|
2,112.01 to 2,826.65 |
7.5 |
158.40 |
|
2,826.66 to 3,751.05 |
15 |
370.40 |
|
3,751.06 to 4,664.68 |
22.5 |
651.73 |
|
More than 4,664.68 |
27.5 |
884.96 |
Full compliance ensured
The team of experts at Domingues e Pinho Contadores keeps up with the latest regulatory changes to ensure full compliance for its clients. For this support, please contact us at: dpc@dpc.com.br.
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