Income Tax exemption range increases and you may have benefited: check it out!

Who must declare accounts to Leão in 2024? With the expansion of the income tax exemption range, everything can change! Check out more details below.

The start of a new year always brings with it important changes, and for Brazilian taxpayers, 2024 is no exception. One of the most relevant news is the increase in the Income Tax exemption range, a change that could benefit millions of Brazilians.

In the guide below, we’ll explore the implications of this change and how it could affect you! Check before starting your statement.

Income Tax exemption range increases and you may have benefited: check. Credit: Pronatec.

What is Income Tax for?

Income Tax is a federal tax on the income and earnings of taxpayers residing in Brazil or abroad. It is one of the pillars of government revenue, used to finance essential public services and maintain the country’s infrastructure.

With the change in the exemption range, the government aims to alleviate the tax burden on the lower-income population, an important step towards a more progressive tax policy.

Understand the increase in the Income Tax Exemption Band

The big news for 2024 is the increase in the Income Tax exemption range. Previously, the limit to be exempt was R$1,903.98, but now, with the new rules sanctioned by the president, this limit has risen to R$2,112.00.

This change is a significant victory, benefiting around 13.7 million taxpayers who will not have to pay the tax.

Who is required to declare income tax in 2024?

Despite the increase in the exemption range, there are still situations in which income tax declaration is mandatory.

This includes receiving taxable income above the limit of R$2,112.00, receiving exempt, non-taxable or taxed income exclusively at source above a certain limit, among other cases. It is crucial to be aware of these conditions to avoid problems with the IRS.

After increasing the exemption range, how do I declare Income Tax?

The Income Tax declaration must be made between March and May 2024, through the Federal Revenue platform.

To facilitate the process, taxpayers can use the pre-filled version, which already contains information provided by paying sources.

When preparing your Income Tax return, it is essential to have all the necessary documents on hand. This includes income reports from financial institutions, salary income reports, pro-labore, profit distribution, retirement, pension, among others. These documents are essential to prove your income and ensure a correct declaration.

Pay attention to the rules to avoid falling into the fine mesh

The increase in the income tax exemption range in 2024 is positive news for millions of Brazilians. This change reflects the government’s effort to make fiscal policy fairer and more progressive, easing the tax burden on lower-income taxpayers.

With the new rules and the increase in the exemption range, many Brazilians will have significant financial relief. It is essential, however, to be aware of the mandatory conditions and documents necessary to make the declaration correctly. Find out more on the official IR website:

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