How to use your Income Tax return to do good

Reporting to the tax authorities can also become a tool for social impact

Those who wish to do good can take advantage of the 2025 Income Tax filing to make donations directly through the declaration process, supporting projects and institutions that benefit society. This type of action has been strongly encouraged by the Federal Revenue Service in recent years.

The practice is promoted as a way for taxpayers to allocate part of the tax owed to cultural and social projects at the national, state, or municipal levels. This is a way to support relevant causes while also meeting the requirements of the "Leão”.

How donations work through the Tax Declaration

First and foremost, it is important to clarify that when making a donation through this method, the individual will incur no additional cost. If the declaration results in an amount to be paid, the donated amount will be deducted from the balance owed. If there is a tax refund, the donation amount will be added to the refund.

With this in mind, the taxpayer must also pay attention to the rules and limits imposed by the Revenue Service for this type of donation.

Check out the details below:

• The donation can only be made through the complete tax return form.
• It is possible to allocate up to 3% of the tax due to the funds for the protection of children and adolescents, and an additional 3% to the funds for the protection of the elderly.
• Donations are not allowed if the income tax return (IRPF) is filed late.

By choosing to donate directly in the return, the program generates the DARF (Tax Collection Document) for the balance of the tax due and the DARF for the donation. The document related to the donation must be paid within the tax return filing deadline, that is, by May 30.
Failure to make the payment results in the rejection of the outstanding amount, and the taxpayer will be required to pay the difference of the tax due – which will be equivalent to the donated amount, with the applicable legal charges.

Check more information about the solidarity destination of Income Tax here.

Donation in the calendar year

It is also possible to make donations throughout a calendar year to be deducted in the following year. For example, a taxpayer who donated in 2024 to funds approved by the government can deduct that amount from the "tax to be paid" in 2025. This is only possible if the taxpayer uses the complete tax return model.

In this modality, cultural, audiovisual, and sports projects, such as those supported by the Rouanet Law and the Sports Incentive Law, can be supported (in addition to those benefiting children, adolescents, and the elderly), with a limit of 6% or 7% of the amount due, with the higher percentage only referring to donations for sports activities.

Tax Compliance

The DPC's individual tax services team provides specialized support in all stages of the Individual Income Tax (IRPF) return. Count on our team to follow the best practices in fulfilling this tax obligation. Contact us: dpc@dpc.com.br.