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The Income Tax Refund will be paid in batches, starting in June and extending until September
The time has come to report your income to the IRS. The period for submitting the 2024 Income Tax (IR) declaration began on Friday (15) and runs until May 31. In addition to declaring assets, investors need to be careful to declare investments.
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Investors must declare that they fall into situations such as: taxable income above R$30,639.90; possession of assets above R$800 thousand; receipt of income that is exempt or taxed exclusively at source, totaling more than R$200,000; and exemption from capital gains on the sale of residential properties.
“Taxation is different for each type of investment,” says Patrícia Zanlorenci, accountant at Vellore Ventures. “The important thing is that the taxpayer has the income report at hand. In this newsletter, you will find all the details on how to make the declaration.”
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Although savings, Real Estate Credit Letter (LCI), Agribusiness Credit Letter (LCA) and encouraged debentures are exempt from Income Tax, the taxpayer must inform the values in the declaration to maintain the transparency of their finances.
Understand the taxation of investments
The main types of investments that need to be declared include:
- Fixed income;
- Variable income;
- Investments abroad;
- Private pension;
- Cryptocurrencies;
- Investment funds.
The taxation of fixed income investments, such as investment funds or Bank Deposit Certificates (CDB) varies according to the term of the investment. The Income Tax (IR) rate is regressive, that is, the longer the period, the lower the rate applied to the value.
- Up to 180 days: 22.5%;
- From 181 to 360 days: 20%;
- From 361 to 720 days: 17.5%;
- Over 720 days: 15%.
Income from financial investments abroad and profits/dividends from entities controlled abroad are subject to a 15% levy on the annual portion of these income.
In the case of investment funds, the IR is 15% (long-term funds) or 20% (short-term funds, lasting up to one year) on income.
For share sale transactions, the tax rate due varies according to the type of share traded. For common shares (ON), the rate is 15% on the capital gain obtained in the operation. For preferred shares (PN), the rate is 10% on the capital gain.
“There have been changes in the way some types of investments are declared, such as cryptocurrencies”, says Jéssica Garcia, tax lawyer. “Now, it will be necessary to detail the digital currency acquired, as well as there will be IR taxation at the rate of 15%, regardless of the amount invested”.
The Income Tax Refund will be paid in batches, starting in June and extending until September. Taxpayers who submit their declaration early tend to receive it in the first batches.