Brazil: Annual income to be adjusted automatically by 4.5% for income tax assessment


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.

Imposto-de-Renda-Brazil Annual income to be adjusted automatically by 4.5% for income tax assessment-global-annal-bhavesh-kumar

The income tax table according IRS is provided below:

Income (in R $) Income tax rate (in %)
0-1787.77 Nil
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

Published by Bhavesh Kumar

A multi-talented media professional with diverse experience spanning across journalism (digital and broadcast), management consultancy and documentary filmmaking. Worked for the leading newspaper (the Times of India) and news broadcaster (NDTV India) on their web portal, feature stories, shooting, scripting, programming and editing broadcast news. A creative mindset focused on executing new-age strategic communication initiatives with all its corresponding elements (clear and coherently written key messages, social media marketing and multimedia content) to ensure effective target audience impressions. Also, worked on several primary and secondary market research projects (Market Feasibility Study) for business expansion into new markets.

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