Income tax: adjustments to progressive tax brackets signed into law

In Brazil Law No. 14,848/2024 was published in a supplementary issue of the Federal Official Gazette on May 1. This legislation enacts the recent adjustments to the monthly progressive brackets for the Individual Income Tax (IRPF) introduced by Provisional Presidential Decree No. 1,206.

The new brackets, now signed into law, have been in effect since February of this year: 

Individuals earning up to two minimum wages (BRL 2,824.00) are exempt from the tax, as the law allows for a simplified deduction of BRL 564.80 from taxable income, hence placing such taxpayers within the exemption bracket.

It is important to note that, for withholding purposes, the monthly deduction for dependents remains unchanged at BRL 189.59.

Support for individual taxpayers

DPC has a department dedicated to assisting taxpayers seeking support to ensure their compliance with the Brazilian Revenue Service. For more information, please reach out to us at: dpc@dpc.com.br.