See how to declare private pension plans in Income Tax

The taxpayer obliged to declare the Income Tax, whose deadline ends at 23:59 on May 31, must inform the private pension amounts that he has invested or that have been withdrawn.

​Those who applied for VGBL (Vida Gerador de Benefício Livre) throughout 2021 need to inform the amounts in the Assets and Rights form. This type of plan does not entitle you to a deduction. If withdrawals were made in 2021, the amount withdrawn must be declared according to the chosen taxation. If it was progressive, the money redeemed goes to “Taxable Income Received from PJ”; in regressive taxation, the amount goes under “Income Subject to Exclusive/Definitive Taxation”, in line “06 – Income and financial investments”. If there was a total redemption of the application, leave the “Situation on 12/31/2021” field of the asset sheet in the bank to write off the asset.

The taxpayer who invests in PGBL (Free Benefit Generating Plan) has the right to deduct the amount from the Income Tax. For those who make the complete declaration, it is possible to deduct up to 12% of the tax due in the year. The application must be declared in the “Payments Made” form, as a supplementary pension.

When the PGBL is withdrawn, the form where the redemption is declared depends on the type of taxation chosen in the plan, which was done at the time of contracting. If it was progressive taxation, the money received goes to “Taxable Income Received from PJ”; in regressive taxation, the amount redeemed goes to “Income Subject to Exclusive/Definitive Taxation”, in line “06 – Income and financial investments”.

The taxpayer who made a full withdrawal of PGBL may still have to pay tax when submitting the declaration. The PGBL with progressive taxation has a retention of 15% in the withdrawal and adjustment in the declaration.

take your doubts

See answers to readers’ questions about how to declare private pension plans, provided by the IOB consultancy.

I made applications in VGBL over the past year. How do I declare? (CDM).

Inform according to the proof provided by the financial institution responsible for the application. In the Assets and Rights form, group 99, code 06, enter the balance at the end of 2021 (leave the 2020 field blank, if you didn’t have a pension plan). If you make new contributions this year, add them to the balance for 2021 and enter the total in field 2022 of the declaration to be delivered in 2023.

Withdrawal of PGBL can also be taxed in the declaration

The taxpayer who made a full withdrawal of PGBL (Programa Gerador de Benefício Livre) may still have to pay tax when submitting the declaration. The PGBL with progressive taxation has a retention of 15% in the withdrawal and adjustment in the declaration.

I cashed out PGBL and invested in a financial investment. As there was already a 15% withholding at source, will I have a new tax on the delivery of the declaration? (LCS).

Inform, in the Taxable Income Received from Businesses by the Holder, the redemption of the PGBL and the IR withheld according to the proof of income provided by the bank, as it specifies the type of plan contracted and the taxation regime chosen (in your case , progressive table). Also inform other sources of income, if applicable. The program will calculate whether there will still be IR to be paid (in this case, it is likely that there will be, since the PGBL was taxed at 15%). If the application made with the PGBL existed at the end of 2021, it must be informed in the Assets and Rights form.

I had PGBL in the bank and the beneficiary was my son. In 2021, the ransom was made by him and the amount went to his account. On his income statement, a net income figure appears on the Income Subject to Exclusive/Definitive Taxation form. He transferred R$ 50 thousand to my account. Can I consider that he made a donation to me? (MEVSI).

In your child’s statement, inform the PGBL income on the Income Subject to Exclusive/Definitive Taxation form, according to the income statement provided by the bank. The R$ 50,000 is informed in the Donations Made form, code 80, with your name and CPF (mother) and the amount donated. In your statement (mother) inform the R$ 50 thousand on the Exempt and Non-Taxable Income form, code 14. If the money was in any of your investments at the end of 2021, inform it in the Assets and Rights form by the respective group and code, as well as all other requested information.