Check out how to declare the reduced salary in Income Tax 2022

In 2021, almost 2.6 million workers were included in the Emergency Employment and Income Maintenance Program, which allowed for a reduction in working hours and wages and the suspension of employment contracts. Participation in the program was entitled to the BEm (emergency benefit) by the federal government.

These amounts, which varied according to the percentage of reduction, are considered taxable income and must be reported in this year’s income tax return.

In 2022, the period for completing and submitting the rendering of accounts with the Tax Authorities started a little later, on March 7th. The deadline ends at 23:59 on April 29.

According to the Revenue, it was necessary to delay the start due to the mobilization of civil servants of the agency, who since last year have been handing over leadership positions and setting up standard operations to pressure the government to negotiate a readjustment.

The HR director of Attend Assessoria, Consultoria e Auditoria, Dilma Rodrigues, says that the benefit installments need to be informed in the “Taxable Income Received from Businesses by the Holder”, which is the same used to declare the salaries paid by the company.

The declaration of the emergency benefit will be made on this form, but in a separate tab, separate from the salaries. The CNPJ and corporate name of the Ministry of Economy program must be informed in the “Paying Source” field. The total received by the worker will be recorded in “Income Received from Legal Entities”.

The government provides an earnings report for workers who have entered the program. This document can be accessed in the digital work card application.

There, the taxpayer can consult the data and the sum of values. The CNPJ of the payer of the salary and journey reduction program is 00.394.460/0572-59 – Emergency Employment and Income Preservation Benefit.

Compensatory aid is exempt income

The legislation that created the job maintenance program also provided for the possibility for employers to supplement their employees’ income while there was a reduction in salary and working hours.

This supplement did not have a salary nature and, therefore, was not included in the calculation of the social security contribution or the FGTS (Fundo de Garantia do Tempo de Serviço). Those who received these amounts, called compensatory aid, must also inform them in the IR declaration.

They will be posted on the “Exempt and Non-Taxable Income” sheet. According to Dilma, it is necessary to choose option 26 and inform the CNPJ and the employer’s corporate name. As it was paid by the company, it must be detailed in the earnings report.

In the IR program, in the field available for description of income, she recommends that the taxpayer writes “compensatory aid” to facilitate recognition of the nature of the amount.

Refund can be paid by Pix

This year, the IRS expects to receive 34.1 million declarations from individuals. Until 4 pm on Friday (25), the agency received 7,765,789 individual income tax returns.

Among the IR novelties in 2022 are the release of the refund that can be programmed through Pix, the Central Bank’s instant payment system. There will still be the option of payment by checking account, the one that is informed in the final step of filling out the declaration.

To use Pix to receive the IR refund, the taxpayer must have a Pix key with his CPF. The other keys, which use email, phone and a random number, will not be allowed. The refund money will be paid between May and September. The first batch will drop into the account on May 31st.

The inclusion of Pix as a means of receiving the refund does not change the priority rules for releasing the refund. Rather, they receive the elderly, people with disabilities or serious illness, and teaching professionals.

Citizens who had taxable income (such as salaries and retirement) above BRL 28,559.70 in 2021 are obliged to declare the Income Tax, which gives BRL 2,379.97 per month. Those who won less are not subject to the fine if they do not declare. To receive the refund of the withholding income tax, however, it is necessary to render accounts to the tax authorities.

See the other situations that require the submission of the IR:

• Received exempt, non-taxable or taxed exclusively at source income above BRL 40,000

• Obtained a capital gain on the sale of assets or rights subject to tax

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

• Performed operations on Stock, Commodity, Futures and Similar Exchanges

• Had, on December 31, 2021, possession or ownership of goods or rights, including bare land, above R$ 300 thousand

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

• Who wants to compensate, in 2021 or following years, for losses from rural activity from 2021 or previous years

• The taxpayer who became resident in Brazil in any month and was in that condition on December 31