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Income Tax: Revenue Service adjusts monthly, annual, profit-sharing, and cumulative tax brackets
New values disclosed will apply for the calendar years 2024 and 2025
On February 16, the Brazilian Federal Revenue Service issued RFB Normative Ruling No. 2,174/2024, revising the cumulative Individual Income Tax (IRPF) brackets for the calendar years 2024 and 2025.
This adjustment is in line with Provisional Presidential Decree No. 1,206/2024, which has recently raised the income tax exemption threshold to include those earning up to BRL 2,824 a month, which is equivalent to two minimum wages. However, the revised values will not apply to tax returns filed this year.
Read on to learn more about the key changes outlined in the regulation.
Calendar year 2024
|
Fiscal Year 2025 (Calendar Year 2024) |
||
|
Monthly income tax deduction brackets effective from February 2024 |
||
|
Taxable Income (BRL) |
Rates (%) |
Deductible Portion (BRL) |
|
Up to 2,259.20 |
zero |
zero |
|
2,259.21 to 2,826.65 |
7.5 |
169.44 |
|
2,826.66 to 3,751.05 |
15 |
381.44 |
|
3,751.06 to 4,664.68 |
22.5 |
662.77 |
|
More than 4,664.68 |
27.5 |
896.00 |
|
Fiscal Year 2025 (Calendar Year 2024) |
||
|
Annual income tax deduction brackets |
||
|
Taxable Income (BRL) |
Rates (%) |
Deductible Portion (BRL) |
|
Up to 26,963.20 |
zero |
zero |
|
26,963.21 to 33,919.80 |
7.5 |
2,022.24 |
|
33,919.81 to 45,012.60 |
15 |
4,566.23 |
|
45,012.61 to 55,976.16 |
22.5 |
7,942.17 |
|
More than 55,976.16 |
27.5 |
10,740.98 |
|
Fiscal Year 2025 (Calendar Year 2024) |
||
|
Income tax on profit sharing distributions effective from February 2024: |
||
|
Annual Profit-Sharing Plan (BRL) |
Rates (%) |
Deductible Portion (BRL) |
|
0.00 to 7,640.80 |
zero |
zero |
|
7,640.81 to 9,922.28 |
7.5 |
573.06 |
|
9,922.29 to 13,167.00 |
15 |
1,317.23 |
|
13,167.01 to 16,380.38 |
22.5 |
2,304.76 |
|
More than 16,380.38 |
27.5 |
3,123.78 |
|
Fiscal Year 2025 (Calendar Year 2024) |
||
|
Income tax on accrued earnings effective from February 2024: |
||
|
Taxable Income (BRL) |
Rates (%) |
Deductible Portion (BRL) |
|
Up to (2,259.20 x NM) |
zero |
zero |
|
More than (2,259.20 x NM) up to (2,826.65 x NM) |
7.5 |
169.44000 x NM |
|
More than (2,826.66 x NM) up to (3,751.05 x NM) |
15 |
381.43875 x NM |
|
More than (3,751.06 x NM) up to (4,664.68 x NM) |
22.5 |
662.76750 x NM |
|
More than (4,664.68 x NM) |
27.5 |
896.00150 x NM |
Calendar year 2025
|
Fiscal Year 2026 (Calendar Year 2025) |
||
|
Taxable Income (BRL) |
Rates (%) |
Deductible Portion (BRL) |
|
Up to 27,110.40 |
zero |
zero |
|
27,110.41 to 33,919.80 |
7.5 |
2,033.28 |
|
33,919.81 to 45,012.60 |
15 |
4,577.27 |
|
45,012.61 to 55,976.16 |
22.5 |
7,953.21 |
|
More than 55,976.16 |
27.5 |
10,752.02 |
What about the 2024 IRPF return (calendar year 2023)?
The income tax return due in 2024, covering the 2023 calendar year, must be paid according to the following annual tax brackets:
|
Fiscal Year 2024 (Calendar Year 2023) |
||
|
Taxable Income (BRL) |
Rates (%) |
Deductible Portion (BRL) |
|
Up to 24,511.92 |
zero |
zero |
|
24,511.93 to 33,919.80 |
7.5 |
1,838.39 |
|
33,919.81 to 45,012.60 |
15 |
4,382.38 |
|
45,012.61 to 55,976.16 |
22.5 |
7,758.32 |
|
More than 55,976.16 |
27.5 |
10,557.13 |
The filing season starts on March 15 and ends on May 31. Below are some tips to help you get started:
Tax compliance for individuals
DPC's dedicated tax team is available to assist taxpayers through every stage of the income tax process, from planning to the final submission of the annual return. You can rely on our expertise: dpc@dpc.com.br.
How can DPC help your company?
Domingues e Pinho Contadores has a specialized team ready to assist your company.
Contact us at dpc@dpc.com.br
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