Income Tax: learn how to declare salary, vacation, 13th and PLR

The worker who prepares to file the Income Tax return has an important ally in filling out the information required by the Federal Revenue, which is the income report provided by the company. The deadline to declare the Income Tax in 2022 is until 23:59 on April 29.

The report is issued by employers until the last business day of February, after submitting their own statements to the IRS.

Eduardo Marciano, from King Accounting, recommends that the worker observe each of the fields in the report and try to follow the data entered in this document, as it is there. “It has a whole sequence that is very close to the fields of the declaration of the individual”, he says.

The 13th salary, for example, should appear, in the report, in a separate field from the others, under the inscription of “income subject to exclusive taxation”. There will be two releases referring to the Christmas allowance. First, the total amount of the 13th, and then, the Income Tax withholding on that payment. The amounts will be declared on the taxable income form received by the company, but in the lines referring to income taxed exclusively at source.

In the exclusive taxation income form, the worker will inform, under the name of “others”, what he received as PLR (Participation in Profits and Results). In the document provided by the company, it is possible that this payment is detailed in the table of supplementary information.

The worker who took a vacation last year also paid tax on the amounts he received before rest. These payments, as well as the calculation of the social security contribution calculated on them, will be added to the total income.

Those who sold vacation days to the employer must inform the amounts on the income tax return. It must appear in the income report as a cash allowance, in the section dedicated to exempt and non-taxable income.

The worker must detail this value in the description field. He can just reproduce what is on the earnings report provided by the employer or write that it is vacation sales. The important thing, in this case, is to facilitate the identification of the origin of that income.

The HT director of the consulting firm Attend, Dilma Rodrigues, recommends that all entries made in the “Exempt and Non-Taxable Income” form be detailed in the field intended for description.

This segment will include payments such as severance pay and the salary supplement for those who have had a reduction in salary and working hours, within the federal government’s job and income maintenance program.

The worker included in the program must be aware of the different payments and where they will be posted. Compensatory aid is that paid by the company, without a salary nature and, therefore, exempt. It will be described in the same income report as other payments, such as salary and vacation.

The benefit paid by the Ministry of Economy will be released as taxable income. This report must be accessed in the application of the digital work card.

Who is required to declare income tax

In 2022, they are required to declare taxpayers who had taxable income above BRL 2,379.97 per month, on average, in 2021. This gives an annual income of more than BRL 28,559.70.

This is not, however, the only requirement to make a citizen accountable to the Tax Authorities. Those who had exempt, non-taxable or taxed exclusively at source income above R$ 40 thousand also need to send the declaration.

Withdrawal from the FGTS (Fundo de Garantia do Tempo de Serviço) and unemployment insurance are examples of these payments.

They also require the submission of the declaration:

• Capital gain on the sale of assets or rights subject to tax

• Exemption from capital gain tax on the sale of residential property, followed by the acquisition of another residential property within 180 days

• Operations on Stock, Commodity, Futures and Similar Exchanges

• Have, on December 31, 2021, possession or ownership of assets or rights, including bare land, above BRL 300 thousand

• Gross revenue from rural activities in an amount greater than BRL 142,798.50

• Have moved to Brazil in any month of 2021 and still live in the country on December 31

The deadline for submitting the income tax return this year ends at 11:59 pm on April 29. The start of submissions started late in 2022. In previous years, the IRS started to receive the declarations on March 1, but the deadline had to be postponed. According to the agency, the mobilization of servers, who have been fighting for readjustments since 2021, had an effect on the IR schedule. In addition, the Revenue website showed instability on the first day of the deadline, and taxpayers faced delays in downloading the 2022 Income Tax program.