Income Tax 2024: Federal Revenue Service discloses rules for this year

 

Key changes include new imposition for individuals holding assets and rights abroad

 

By Rosana Villardi

 

Through Normative Ruling No. 2,178/2024, issued on March 7, the Federal Revenue Service has set forth the regulations for filing the 2024 Income Tax Return. Taxpayers are allotted from March 15 to May 31 to file their returns pertaining to the 2023 calendar year.

The most substantial changes for this year concern taxpayers residing in Brazil who hold assets and investments abroad. However, given the complexity of the issue, this matter will be further addressed in a separate Normative Ruling, which is yet to be issued. 

The focus this year is on the consolidation of the pre-filled tax returns, a feature provided by the agency to streamline the document’s preparation. While the aim is to reduce errors, taxpayers should exercise caution when making this option. The Revenue Service has constantly stressed the importance of taxpayers double checking and, if necessary, amending the auto-filled information to ensure accuracy.

Below are the main regulations and innovations announced: 

 

Filing schedule

Taxpayers will have 78 days to prepare and submit their tax returns: from March 15 to May 31. 

 

Who is required to file an Income Tax Return in 2024 

Attention should be paid to this item, as there have been some adjustments to the rules in force. Individuals are required to file their tax return this year if, in 2023, they:: 

• received taxable income exceeding BRL 30,639.90, marking an increase from the previous year's threshold of BRL 28,559.70. 
• received income that was exempt, non-taxable, or taxed exclusively at the source, totaling more than BRL 200,000 (previously, this threshold was BRL 40,000); 
• received earnings from the sale of assets or rights in any month, subject to taxation; 
• engaged in transactions on stock, commodities, futures, and similar markets, totaling more than BRL 40,000 or realized net gains that are considered taxable income;
• qualified for an exemption from taxes levied on capital gains following the sale of a residential property, provided they purchased another residential property within 180 days;
• earned gross revenue exceeding BRL 153,199.50 from rural activities (previously, this threshold was BRL 142,798.50).
• possessed or owned goods or rights, including bare land, valued over BRL 800,000 as of 12/31/2023 (previously, this threshold was BRL 300,000).
• became tax resident in Brazil in any month and remained so until 12/31/2023;
• elected to report the assets, rights, and liabilities held, directly or indirectly, by a controlled entity abroad as though directly owned by the individual owner;
• owned trusts or other similar arrangements;
• chose to reassess the market value of assets held abroad. 

The introduction of the last three items results from the enactment of Law 14.754/2023, known as the "Offshore Act," which imposes new regulations on the taxation of such investments. 

 

Further reading: Investing across borders: how the new tax rules impact taxpayers holding assets abroad 

 

Progressive income tax rates for 2024 

 

Taxable Income (BRL)	Rate (%)	Deductible portion (BRL)
Up to BRL 24,511.92	zero	zero
BRL 24,511.93 to BRL 33,919.80	7.5	BRL 1,838.39
BRL 33,919.81 to BRL 45,012.60	15	BRL 4,382.38
BRL 45,012.61 to BRL 55,976.16	22.5	BRL 7,758.32
More than BRL 55,976.16	27.5	R$ 10.557,13

Pre-filled return 

This option can be used by taxpayers to retrieve information pertaining to identification data, address, receipt numbers, details of dependents, sources of income, assets and rights, earnings and payments reported through the various statements filed with the Revenue Service, such as DIRF, DIMOB, and DMED, ‘Carnê-Leão’, contributions to private pensions reported in e-Financeira, specifics of real estate transactions drawn up before a notary, donations declared by institutions within that same calendar year, cryptoassets reported by exchanges, account balances as of 12/31/2023 for bank and investment accounts, inclusion of new bank or investment fund accounts not reported in the 2023 tax return, and income from refunds received within the same year.

Additionally, this year, the Federal Revenue Service has introduced the option to automatically populate aircraft information using data from the National Civil Aviation Agency of Brazil – ANAC.

It is important to note that the option for a pre-filled tax return is exclusively available to those with gold or silver level gov.br accounts.

Individuals should keep in mind that they are accountable for double checking the accuracy of the imported data and for adjusting and adding information, as needed.  

 

Due dates for installments 

Taxpayers with taxes due should pay attention to the following schedule for making payments related to the Federal Revenue Service Payment Form (DARF):

Deadline	Installment
By May 10	Option for direct debit of the 1st installment or lump sum
By May 31	Due date of the 1st installment or lump sum
Last business day of each month, up to the 8th installment on December 30	Due dates for subsequent installments

 

Additionally, by May 31, taxpayers who chose to make a donation directly on their 2024 tax returns must pay the corresponding Darf for contributions to the protection funds for children, adolescents, and the elderly, with no option for installment payments. 

 

Income Tax refunds

The Federal Revenue Service has divided the refund payments to taxpayers into five batches:

1st batch	2nd batch	3rd batch	4th batch	5th and final batch
May 31	Jun 28	Jul 31	Aug 30	Sep 30

 

The following criteria for prioritization in granting refunds have also been set: 

• Taxpayers aged 80 years or older; 
• Taxpayers aged 60 years or older, individuals with disabilities, and those suffering from serious illness; 
• Taxpayers whose primary source of income is teaching; 
• Taxpayers who use the pre-filled form and/or have opted to receive the refund via the Brazilian Instant Payment Platform (PIX); 
• Other taxpayers. 

 

Within each priority group, the tiebreaker criterion is the date the declaration was submitted. 

The provisions regarding income tax refunds are further detailed in RFB Executive Declaratory Act No 2/2024. 

 

Changes to tax return forms

The Federal Revenue Service has also introduced modifications to the tax return form, specifically concerning: 

• Identification of cryptoasset types;
  
• Deductible donations made in 2023;
• Recipients of alimony or child support, with mandatory supply of Individual Taxpayer ID number (CPF) for recipients living abroad and details on the court order or public deed;
• Date of re-entry into the country (for non-resident taxpayers);
• Asset identification as stipulated by Law No. 14,754/2023. 

 

Penalties

Taxpayers who file after the deadline are subject to: 

• A penalty of 1% per calendar month or part thereof, imposed automatically and based on the total tax due, even if the tax has already been fully paid. 
• A minimum fine of BRL 165.74 and a maximum of 20% of the income tax due.  

  

File your 2024 income tax with peace of mind and security 

DPC boasts a specialized team dedicated to guiding taxpayers through the best tax practices, ensuring compliance with regulations even in complex or unique scenarios, including equity investments, overseas assets, and more. You can rely on our expertise for preparing and filing your 2024 Income Tax return. Reach out to our Individuals department at: dpc@dpc.com.br.