Individual Income Tax Return

Start of delivery period

→ The deadline for filing the Annual Income Tax Return (“DDA”) for individuals began on March 17, 2025 and ends at 11:59 PM on May 30, 2025.

→ The income tax return software is available for download on the Federal Revenue Service website.

Mandatory Submission

→ Annual taxable income above R$ 33,888.00;

→ Exempt, non-taxable, or exclusively taxed at source income above R$ 200,000.00;

→ Gross revenue from rural activity exceeding R$ 169,440.00;

→ Capital gains from the sale of assets or rights;

→ Transactions on stock exchanges (i) exceeding R$ 40,000.00; or (ii) with net gains subject to tax;

→ Possession or ownership of assets or rights whose total value is equal to or greater than R$ 800,000.00;

→ Opted for income tax exemption on capital gains from the sale of residential properties, followed by the acquisition of another property within 180 days;

→ Held a trust and/or other contracts governed by foreign law;

→ Opted for the updating of real estate assets to market value;

→ Received income abroad from financial investments and profits and dividends;

→ Became a resident in Brazil;

Relevant aspects

→ To submit the pre-filled tax return, you need a “gov.br” account at the silver level or higher;

→ The tax due on dividends, interest, and capital gains from abroad should not be paid monthly, but only in the Annual Tax Return (DAA), definitively, at a rate of 15%;

→ For cases of income from controlled companies abroad ( offshore ), tax payment at a rate of 15% on profits, even if not distributed (i) if the company is located in a tax haven or country with a privileged tax regime, or (ii) passive income exceeding 40%;

→ Indiscriminate updating of asset values ​​is not possible, so improvements to real estate, for example, must be properly detailed.

AVOID FINES!

→ Late filing of the tax return subjects the taxpayer to a fine ranging from a minimum of R$ 165.74 to a maximum of 20% of the income tax due.