The individual’s income will be automatically adjusted by 4.5% for one last time to provide for the inflation in Brazilian economy. The adjustment was first put in place in 2007 and was meant to be used until 2010 but it was further extended by the government till 2014 in the provisional measure 528. This tax deduction will be available on the income earned in 2014 which will be assessed in 2015.
The income tax table according IRS is provided below:
|Income (in R $)||Income tax rate (in %)|
|1,787.78 – 2,679.29||7.5|
|2,679.30 – 3,572.43||15|
|3,572.44 – 4,463.81||22.5|
|4,463.81 and above||27.5|
The real rate of inflation according to the National Consumer Price Index Board was 5.73% in 2013 and expected to be close to 5.98% in 2014 in the figures released by the central bank in its survey.
The National Union of Tax Auditors at IRS have however raised concerns over the fact that people who were earlier exempted from income tax because of low income may now have to pay taxes.
Source: Braganca Portal