The 2024 income tax return for Brazil introduces key changes impacting filing procedures, mandatory filing criteria, and available deductions. Here's a simplified guide to help you navigate these updates:
1. Progressive Tax Table Adjustment
Significant adjustments to the progressive tax table mean higher income thresholds before taxes kick in. The tax-exempt income level has been increased from R$1,903.98 to R$2,112.00 monthly.
Additionally, a new simplified tax calculation method introduces a 25% discount, effectively raising the tax-free income ceiling to R$2,640.00.
2. New Filing Requirements
The income thresholds for mandatory tax return filing have seen an increase across the board. The general income threshold now sits at R$30,639.90. Agricultural income filing requirements have risen to R$153,199.50.
The exemption for non-taxable or tax-exempt income now extends to R$200,000, with the asset declaration threshold also climbing to R$800,000.
3. Rules for International Assets
2024 brings new regulations for taxpayers with international financial investments, including:
- Declaring assets from controlled businesses as personal assets;
- Ownership of trusts in foreign countries;
- Updates to the valuation of foreign-held assets.
4. Enhanced Deductions for Charitable Giving
The new tax year allows for increased deductions on donations, encouraging charitable contributions. Taxpayers can now deduct up to 7% for donations to sports initiatives, 1% towards cancer care (Pronon) and disability support (PRONAS), and 6% for contributions to recycling projects, reflecting the previous year's donations.