Donations through Individual Income Tax: find out how to do it and support a good cause

Did you know that you can use part of your income tax to support transformative initiatives and actions that benefit many people?

Through encouraged donations made throughout the calendar year, taxpayers can deduct up to 8% of the tax due on the return.

Encouraged donations are those directed to funds and projects previously approved by the government for deduction in the income tax return. The incentive aims to stimulate the Culture, Sport, Social Assistance, and Health sectors.

How it works

Donations made throughout the year may be deducted from the tax calculated in the Individual Income Tax Return (Declaração de Imposto de Renda de Pessoa Física - DIRPF), which will be submitted in the following year, as long as the taxpayer chooses the complete model of the return in 2022.

In all cases, the benefited social project or fund must issue a receipt for the donation, proof that must be kept by the taxpayer for 5 years (from the first business day of the year following the year in which the return is processed).

Make a donation in 2021

Seize this opportunity and make donations this year for deduction in the next DIRPF.

A great advantage of making the donation this year, that is, during the calendar year, is benefiting from a higher percentage of discounts, 8%.

If the donation is partially or fully directed when filling out the DIRPF, the tax deduction percentage drops to 6%. Learn more below.

Donations when filling out DIRPF 2022

Even if taxpayers didn't make incentive donations throughout 2021 or haven't donated the entire amount they are entitled to deduct, they can still use the benefit by making the donations when filling out the next income tax return.

How to do it:

It is important to remember that the amount of donations made in the return plus those made during the calendar year cannot exceed 6% of the income tax due.

When choosing to donate directly in the return, the program will generate the Federal Revenue Collection Document (DARF) code 0211 of the tax due balance and the DARFs of donations – code 3351 for donations to the Statute of Children and Adolescents and code 9090 for donations to the Statute of the Elderly.

The donation DARF must be paid within the deadline for submitting the return, with no deadline extension. Failure to pay will result in the final disallowance of the outstanding amount, and the taxpayer will be required to pay the difference in the tax due - which will be equivalent to the amount donated, with due legal additions.

Solutions for individuals

DPC's individual service center guides taxpayers in all steps and stages of the Individual Income Tax return, also dealing with complex situations, special cases and amendments. Count on this support: dpc@dpc.com.br.