The Income Tax, known as the “Annual Equalization Declaration”, has the purpose of comparing the differences in the declared tax, whether it is the excess or the lack.
This Wednesday (15th) the period for filing the 2023 tax return began. In the document, the taxpayer must complete all taxable income and expenses, in order to compare the tax collected at source during the year. Such a comparison may result in the refund of the extra amounts paid or the payment of the difference.
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The second case may cause some strangeness and confusion for taxpayers. However, this should come as no surprise given that the annual tax return is known as an ‘Annual Adjustment Statement’ meaning it will adjust for differences in the taxes you pay, whether overpayments or underpayments.
The value is calculated on the basis of table of progressive income taxes, which indicates how much each taxpayer must pay based on his taxable income, i.e. the more a person receives, the more he must contribute. Some of these incomes already have IR withheld at source, such as salary, but others must be declared when settling accounts with the Revenue Agency.
What is the progressive table?
The progressive table is used to determine the income brackets and the respective rates that will be charged in the income tax. Check out the current table below;
- Income up to R$ 1,903.98 per month: exempt from income tax;
- Income from R$ 1,903.99 to R$ 2,826.65 per month: rate of 7.5%, with tax deductibility of R$ 142.80;
- Income from BRL 2,826.66 to BRL 3,751.05 per month: rate of 15.0%, with withholding of the installment of BRL 354.80;
- Income from BRL 3,751.06 to BRL 4,664.68 per month: rate of 22.5%, with a deductible installment of BRL 636.13;
- Income greater than BRL 4,664.68: rate of 27.5%, with a deductible portion of BRL 869.36.
Why should I pay more taxes?
If the citizen has to pay any amount after evaluating the IR 2023 declaration, it means that he has collected less than he should. While we don’t have a specific answer as to why a contributor should contribute more, some scenarios can be envisioned, such as:
- Have multiple payment sources: such as working more than one job, receiving a pension and continuing to work or receiving rent from a property;
- Include an employee with own income: such as pension, alimony, salary or rental income.
One of the factors favoring the increase in the refund amount it is the statement of health, scholastic and social security expenses. For this and other reasons it is so important fill out the declaration carefully, making sure all information is correct.
What to do in this case?
According to the tax lawyer of Jorge Advogados Associados, Lucas Simões de Andrade, if the taxpayer is not entitled to a refund and still has to pay the remaining balance, he can pay it in up to eight monthly installments, with a minimum amount of R $ 50. amounts of less than R$ 100 must be paid in cash.
“According to the new regulatory instruction of the Federal revenue of Brazilthe taxpayer has the right to anticipate, in whole or in part, the payment of the tax or the quotas, or to expand the number of quotas initially envisaged”, highlights the specialist.
Finally, inform that the payment can be made by: direct debit on a current account; through the payment of DARF; or by electronic transfer of funds through the electronic systems of financial institutions authorized by the RFB to operate in this method of collection.
Finally, Andrade points out that, if the taxpayer fails to pay, he will be notified by the RFB to pay the amount owed (plus interest and fine) – he can object to the amount, if he understands it is undue.
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Source: Terra
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