It's time to file your income tax return in Brazil. But before you do, it's important to know the situations in which you are required to submit it.
It's crucial to understand that failing to file your income tax return will result in a penalty.
Thus, individuals must file an income tax return if they meet any of the following conditions:
- Received taxable income that exceeds R$30,639.90, which is subject to adjustment in the tax return;
- Received income that is exempt, non-taxable, or taxed exclusively at the source, totaling more than R$200,000.00;
- Realized capital gains from the sale of assets or rights in any month, which are subject to income tax;
- Engaged in transactions on stock exchanges, commodities, futures, and the like, where the total volume exceeded R$40,000.00, or if there were net gains that are taxable;
- Earned gross income from rural activities exceeding R$153,199.50; or intends to offset, in the 2023 calendar year or later, losses from previous years or within the same year of 2023;
- Possessed or owned, as of December 31, 2023, assets or rights, including bare land, valued at more than R$800,000;
- Became a tax resident of Brazil in any month and maintained that status as of December 31, 2023;
- Elected to waive the income tax on capital gains from the sale of residential properties, provided the sale proceeds were reinvested in residential properties within Brazil within 180 days from the sale agreement, pursuant to Article 39 of Law No. 11.196/2005;
- Chose to declare the assets, rights, and liabilities of entities controlled directly or indirectly abroad as if held directly by the individual, following the Fiscal Transparency Regime for Controlled Entities as set out in Article 8 of Law No. 14.754/2023;
- Held, as of December 31, 2023, ownership of trusts and other arrangements under foreign law with characteristics akin to those described in Articles 10 to 13 of Law No. 14.754/2023;
- Opted to update the market value of overseas assets and rights in accordance with Article 14 of Law No. 14.754/2023.