DIRF individuals: taxpayer must be aware of the obligation

Annually, compliance with tax obligations for individuals raises doubts in taxpayers. In addition to affecting companies, the complex Brazilian tax legislation also lies with the average citizen, who faces a series of tax requirements.

One of the accessory tax liabilities that have generated doubts is the DIRF (Withholding Income Tax Statement), which lies on all paying sources. Through this statement, individuals and legal entities must inform the Federal Revenue of the amount of income tax and/or withholding taxes, the income paid or credited to their beneficiaries.

Individuals are required to present the statement to those who have paid or credited income over which they have Withholding Income Tax Rate (IRRF), even if only in one month of the calendar year, by themselves or as representatives of third parties.

• Payments to domestic employees;

• Payments, credits or remittances to non-residents related to rents, coverage of expenses with travel abroad, services and technical assistance, interest on capital, etc., even though there was no withholding tax, including in cases of exemption or zero rate;

• Closure of estate;

• Definitive Exiting from Brazil

How report DIRF Individuals?

DIRF Individuals must be report through the Statement Generator Program, which can be downloaded from the official website of the IRS. The paying source must fill in the information regarding withholding income tax and send it via Receitanet.

What is the deadline for submit the DIRF?

The taxpayer has until February 28, 2018 to file the statement. It is necessary to be aware of the calendar, because those who do not submit the statement in the term are subject to the penalties provided by the legislation. Incorrect filling and omission of data can also lead to fines.

To avoid disruptions, the ideal is that the taxpayer can rely on experienced professionals in accounting and tax advice to the individual. Domingues e Pinho Contadores has an exclusive department to attend national and foreign individuals, offering the necessary support for the correct submit of all tax obligations.

See general rules for DIRF here

Also see: Important issues about 2018 Dirf