Taxpayers should be aware of the deadline for taking advantage of the discount of PGBL in the IR Statement

Those who have a PGBL (Free Generating Benefit Plan) pension plan may deduct up to 12% from the gross annual taxable income from the Income Tax (IR).

However, it is important to know that such benefit is recommended for taxpayers who opt for the full IR Annual Adjustment Report (DAA) model, and that this private pension plan or contribution should be hired before Dec-30-2019 (last bank’s business day of the year).

The taxpayer must also contribute to the INSS or to the civil service regime. And if the plan is in behalf of dependents older than sixteen years-old, they must also be social security contributors.

Important: The PGBL as tax benefit does not mean that there will be no income tax on the contributions made to the plan. Actually, the taxpayer postpones the payment of the tax, since the collection of income tax happens only at redemption of the accumulated value (formed by the contributions and the income earned).

Before opting for the taxation form, the taxpayer must simulate which model of IR reporting best fits to the reality, without forgetting to make his contributions in PGBL within the deadline.