Last March 02nd 2017, has started the Compliance Season for submission of Individual Income Tax Returns referent to calendar year 2016. The deadline ends on April 28th 2017 and, historically, the Federal Revenue doesn’t extend this deadline. Therefore, it’s very important to pay attention to the deadlines and to consult specialists in case of any doubts. For this year, the Federal Revenue has issued Normative Instructions, which changed a few rules applicable to Annual Income Tax Returns.

Starting from last February, it has already started the payments and withholdings obligation upon income earned during January, therefore, the current calendar year 2017. In this scenario, calculate on a monthly basis the Carnê-leão (monthly calculation upon income earned abroad or from individuals in Brazil, such as rent. The Revenue is intensifying the fiscalization upon such sources of income and has been notifying individuals who left such income tax due for the annual adjustment at the time of submission of the return in the following year. The monthly calculation (Carnê-leão) is a monthly obligation, according to the applicable law. The applicable fines can reach 50% of the tax due that should have been paid on a timely basis.

Through the Normative Instructions Nº 1.688 from January 31st, 2017, the Federal Revenue has reduced to 12 years old the mandatory minimum age for enrollment on the Individual Taxpayers' Registry (CPF), for individual who will be included as a dependent on annual income tax returns, to be submitted within March and April this year. This reduction aims to avoid fraud in dependent’s report.   Currently the deduction for each dependent is of R$2.275,08.

Other amounts who have been changed are the annual limit of tuition expenses that now is of R$ 3.561,50 and the simplified discount of 20% of the taxable income that now is limited to R$ 16.754,34.

Worth to emphasize that the support documentation related to expenses and deductions reported on the return must be kept on your files for at least 5 years, in case of any assessments by the Revenue.

RSM BRASIL has a department exclusively devoted to individual’s taxation. As a member of RSM International, we’re able to offer tailored services to our national and international clients.

Areas of expertise:

  • Tax Advisory (national and international);
  • Review of tax procedures and advisory regarding compliance with tax obligations (main and accessory);
  • Central Bank filling obligations for individuals – BACEN rules and Tax issues;
  • Foreign  and  Local  payroll advisory  and structuring;
  • Tax Equalization;
  • Usage of Tax Incentives and Tax Benefits as a Tax Planning, international tax treaties included.

 

For more information, contact us: 

 

Marcelo Sampaio  - [email protected]
Partner - Head of Tax