The deadline for submitting the Individual Income Tax Return related to the 2016 Calendar Year (“DIRPF 2017”) began this Thursday, March 2nd, and ends at 11:59 hours, Brasilia time, on April 28th.

According to the Brazilian Federal Tax Revenue (“RFB”), the DIRPF 2017 must be filed by Brazilian residents who earned in the 2016 calendar year: (i) taxable income above R$ 28,559.70, in Brazil or abroad, (ii) exempt or non-taxable income, or taxed at source in an amount above R$ 40,000.00, (iii) capital gains from the sale of assets and rights in any of the months of that calendar year, or (iv) gross income from rural activities in amounts greater than R$ 142,798.50.

The DIRPF 2017 may be submitted online by downloading the software made available by RFB at its website[1], via mobile devices, using the RFB application available for this purpose, or by accessing the RFB e-CAC portal with digital certification.

The main innovations implemented in DIRPF 2017 are:

  • New technological features that allow automatic updating of the application used in tablets and smartphones, without the need of manual update of new versions via download, as well as the storage of names entered by the taxpayer and its submission without need for separate installation of Receitanet software, which has been incorporated into DIPF2017 software;
  • Simplifying the insertion of exempt and non-taxable income data, as well as those related to income subject to exclusive/definitive taxation due to the remodeling of its respective forms; and
  • The obligation to inform the Individual Taxpayer Enrollment Number (“CPF”) of dependents and alimony beneficiaries with 12 years of age and older, completed by December 31st

Taxpayers who choose to submit the DIRPF 2017 using legal deductions must observe not only the limit of the deduction per dependent, which has been increased to R$2,275.08, but also the limit for the deduction of expenses with education, which has been increased to R$3,561.50.

In turn, those who opt for the simplified discount corresponding to 20% of the total value of taxable income, should observe that such deduction is limited to R$16,754.34.

Late submission of DIRPF 2017 by taxpayers obligated to file the same triggers a fine of R$165.74 if no taxes are due to the RFB, or 1% per month up to 20% of the taxes due, in case there are payable amounts.

[1] Through the access of the following link: http://idg.receita.fazenda.gov.br/interface/cidadao/irpf/2017/download