Is anyone who earns up to two minimum wages EXEMPT from Income Tax? Find out everything!

With the change in the table, anyone within the income rule may be exempt from Income Tax. The measure will benefit around 15.8 million people in 2024.

Have you ever imagined not having to worry about Income Tax anymore if your salary is within a certain range? It seems like a dream, doesn’t it?

Fortunately, for many Brazilians, this has just become reality. Recently, the federal government announced a measure that promises to ease the pockets of millions of workers. Understand below!

With the change in the IR table, anyone who receives a certain amount is exempt from Income Tax. Understand how this happens! / Credit: @jeanedeoliveirafotografia / pronatec.pro.br

What is the IR declaration?

In principle, the Income Tax (IR) declaration is an annual process where citizens and companies inform the Federal Revenue Service of their income, expenses and possible deductions.

This procedure helps to determine whether the taxpayer should pay more taxes or receive a refund.

Failure to declare, when mandatory, can lead to fines and interest on the amount owed, in addition to restrictions on the CPF or CNPJ, making financial operations and access to credit difficult.

Furthermore, the lack of declaration prevents the issuance of negative debt certificates, which are essential for various legal and commercial transactions.

When to submit the IR declaration in 2024?

The deadline for submitting the Income Tax declaration is scheduled to begin on March 15th and will last until the last day of May, the 31st.

Even though the 2024 Income Tax filing season has not yet started, it is prudent to start preparing in advance, ensuring that all necessary information is up to date and ready for when the moment arrives.

Worker exempt from Income Tax

Imagine reaching the end of the month and seeing that part of your hard-earned money will no longer be allocated to Income Tax.

This is now possible for those earning up to two minimum wages, thanks to the publication of a new Provisional Measure (MP) by the government.

In other words, with this change, individuals who receive up to R$2,824 per month will be free from this tax commitment.

See more: Lula and the CONTROVERSIAL decision on Income Tax for Brazilians: you need to know

Understanding the details

Before this update, the exemption limit was slightly lower, which meant that even those earning a modest amount still had to contribute.

Now, with the increase in the minimum wage, the exemption range has been adjusted to benefit those who need it most.

In this way, the MP not only adjusted the exemption limit, but also introduced a simplified discount, giving workers more flexibility when declaring tax.

With these changes, it is expected that 15.8 million Brazilians will benefit.

General impacts

This measure represents a significant reduction in the tax burden for a large portion of the population, with an estimated impact of R$3 billion in revenue for 2024.

Now, it is up to the National Congress to analyze and decide on the permanence of this MP.

This government move sets an important precedent for future discussions on taxation and fiscal relief, especially for the working class.

How will this affect the economy in the long term and what will be the next steps in this journey of fiscal adjustments? Only time will tell.

Are you exempt from Income Tax?

Furthermore, the Income Tax exemption for those earning up to two minimum wages is news that brings a sigh of relief to many Brazilians.

It is a demonstration that adjustments and changes are possible when the focus is on the well-being of the population.

Now, with more money in their pockets, many can breathe a little easier, at least when it comes to the tax lion.

Find out more: IPVA paid on PIX? Find out how to pay the tax that is not optional

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