On February 28, 2023, the Receita Federal do Brasil, the Brazilian tax authorities, published the Normative Instruction n. 2134/20231 with the general instructions related to the 2022 individual income tax returns, including the filing and payment deadline. All taxpayers subject to Brazilian tax law for the 2022 tax year will have the period from March 15 to May 31, 2023, to prepare and file their individual tax returns.
WHY THIS MATTERS
The original deadline period for the 2022 tax return filling and payment is different than the one usually applied by the Brazilian authorities. Previously, the original filling period used to be between March 1 and the last day business day of April of the following year. Since 2020, the tax authorities have been changing the filling deadline to accommodate the requests of taxpayers facing challenges to obtain the required data due to the COVID-19 pandemic situation.
It is important to highlight that there is no possibility to request individual filling extensions in Brazil. Therefore, all taxpayers and tax service providers should be aware of the current tax filing period and take action to meet the new deadline as appropriate.
2022 Brazil Income Tax Returns
Filing Details
Taxpayers will have the period from March 15, 2023, to May 31, 2023, to complete their 2022 Brazil income tax returns and pay the related tax due for the following returns:
- 2022 Annual Income Tax Return: Applicable to individuals who remained tax resident in Brazil during the entire 2022 calendar year, or individuals who became tax resident during the 2022 tax year.
- 2022 Final/Departure Income Tax Return: Applicable to individuals who became nonresidents in Brazil during the 2022 calendar year and remained nonresident on December 31, 2022.
Penalty for Late Filing
Late-filed tax returns are subject to a penalty of 1 percent per month, limited to 20 percent, on the total tax amount due (even if already paid), with a minimum applicable amount of BRL 165.74.
Payment and Refunds Schedule
The tax authorities have also confirmed that taxpayers have until May 31, 2023, to pay income tax due for 2022 income tax returns.
The tax due amounts can be paid by a tax bill (“DARF”), or by direct debits from a bank account selected by the taxpayer. However, individuals opting for direct debt payments have until May 10, 2023, to submit their 2022 tax returns to be able to pay the total tax amount due via direct debit, or at least the first (of up to eight) installments.
The 2022 tax refunds are scheduled to be paid in five monthly installments, starting end of May 2023, based on the taxpayers’ filling date, with a special priority for taxpayers aged 60 years or older, people with physical or mental disabilities, people with serious illnesses, teachers, and for those who opt to receive the tax refund via “PIX” (the Brazilian instant payment ecosystem).
FOOTNOTE
1 To see (in Portuguese) the Brazilian Revenue Normative Instruction n. 2.132 with the guidelines for the 2022 Brazil Income Tax Return filling and payment (Instrução Normativa Rfb Nº 2.134, de 27 de fevereiro de 2023, Publicado em: 28/02/2023, seção: 1, página: 31), click here.
BRL 1 = USD 0.19
BRL 1 = EUR 0.18
BRL 1 = GBP 0.16
BRL 1 = JPY 26.314
BRL 1 = ARS 38.42
Source: www.xe.com
The information contained in this newsletter was submitted by the KPMG International member firm in Brazil.
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