Digital Certificates: find out how they make income tax returns easier and when they are required

Digital certificates simplify and streamline procedures, making processes more efficient and secure

Using a digital certificate when preparing your Income Tax return not only simplifies the process but also enhances security for those who want to ensure compliance with tax authorities. But did you know that a digital certificate is mandatory in certain situations? Below, we explore how this tool streamlines tax filing and outline the circumstances where its use is legally required.

Why is it easier to file a tax return using a digital certificate?

A digital certificate enables taxpayers to use the pre-filled tax return feature, simplifying the provision of information and offering greater accuracy. 

Thus, by auto-populating fields with taxpayer-specific information such as income, deductions, and assets, this automation makes filing more efficient, accurate, and reliable.

Since the data is sourced directly from the tax authority's databases, the resulting tax return is more likely to meet all regulatory requirements, enhancing compliance with the regulations in force. 

However, although the Federal Revenue Service enables automatic data population in the tax forms, it is imperative for taxpayers to double check all information carefully and make any necessary adjustments, additions, or corrections to ensure accuracy.

When is a digital certificate mandatory for filing Income Tax returns?

A digital certificate is mandatory for taxpayers who, within the relevant calendar year, meet any of the following criteria: 

1. Received earnings classified as: 

• taxable income subject to reporting in the annual tax return, the sum of which exceeded BRL 5 million;
• exempt and non-taxable income, the sum of which exceeded BRL 5 million; 
• income subject to tax withholding (whether on an exclusive or permanent basis), the sum of which exceeded BRL 5 million; or
  

2. Made payments to companies eligible for deductions on the tax return, or to individuals (deductible or not), the sum of which exceeded BRL 5 million, either per category or cumulatively.

Get a digital certificate

Issuing or renewing your digital certificate is simple, fast and secure. Just reach out to Domingues e Pinho Contadores, a Registration Authority accredited by the Brazilian Public Key Infrastructure – ICP-Brasil. Contact one of our agents at: dpc@dpc.com.br.