This Wednesday (15), the period for submitting Income Tax returns 2023 began. In the document, the taxpayer must complete all taxable income and expenses, in order to compare the tax that was collected at source throughout the year. This comparison may result in the refund of the extra amounts paid or the payment of the difference.
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The second case can cause some strangeness and confusion in taxpayers. However, it shouldn’t come as a surprise given that the annual income tax return is known as the “Annual Adjustment Statement”, meaning it will adjust for differences in tax paid, whether it’s overpayment or underpayment.
The amount is calculated based on the progressive income tax table, which indicates how much each taxpayer must pay according to their taxable income — that is, the more a person receives, the more they must contribute. Some of this income already has the IR deducted from the source, such as the salary, but others must be declared in the settlement of accounts with the Tax Authorities.
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What is the progressive table?
The progressive table is used to determine the income ranges and the respective rates that will be charged in the Income Tax. Check the current table below;
- Income up to R$ 1,903.98 per month: exempt from Income Tax;
- Income from R$ 1,903.99 to R$ 2,826.65 per month: rate of 7.5%, with tax deductible of R$ 142.80;
- Income from BRL 2,826.66 to BRL 3,751.05 per month: rate of 15.0%, with installment of BRL 354.80 to be deducted;
- Income from BRL 3,751.06 to BRL 4,664.68 per month: rate of 22.5%, with a deductible installment of BRL 636.13;
- Income above BRL 4,664.68: rate of 27.5%, with a deductible portion of BRL 869.36.
Why should I pay more tax?
If the citizen needs to pay any amount after evaluating the IR 2023 declaration, it means that he collected less than he should. Despite not having a specific answer as to why a contributor should contribute more, it is possible to foresee some scenarios, such as:
- Having multiple paying sources: how to work more than one job, receive a pension and continue working or receive rent from a property;
- Include a dependent with own income: such as retirement, alimony, salary or rental income.
One of the factors that favors the increase in the amount of the refund is the declaration of expenses with health, education and social security. For this and other reasons, it is so important to fill out the declaration very carefully, ensuring that all information is correct.
What to do in this case?
According to the tax lawyer at Jorge Advogados Associados, Lucas Simões de Andrade, if the taxpayer is not entitled to a refund and still needs to pay the remaining balance, he can pay it in up to eight monthly installments, with a minimum amount of R$ 50 Amounts below R$100 must be paid in cash.
“According to the new normative instruction of the Federal Revenue of Brazil, the taxpayer may anticipate, in whole or in part, the payment of the tax or quotas, or increase the number of quotas initially foreseen”, highlights the expert.
Finally, he informs that the payment can be made by: automatic debit in current account; through the payment of DARF; or through electronic transfer of funds through the electronic systems of financial institutions authorized by the RFB to operate with this collection modality.
Finally, Andrade points out that, if the taxpayer does not make the payment, he will receive a notification from the RFB to pay the amount due (plus interest and fine) – he can object to the amount, if he understands that it is undue.
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