As of March 1, 2021, the deadline for the declaration of income tax for the 2020 calendar year in Brazil and the deadline for April 30th will begin. There are many doubts about you, I really owe you not to file my income tax declaration. 

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Let's see, we will have some simple and common questions to see if I have this obligation, if they only deal with some topics on the subject:

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1)    Soy Extranjero, not soy citizen, only resident, temporary and/or permanent. Do I have to present my tax declaration for income tax in Brazil?

A: This question is easy to answer, we have the same obligations that other people have annual taxable income in the previous year for the amount of R$ 28,559.70, which amounts to approximately R$ 2,380.00. It has free or non-taxable or taxable income (withholding by the payer), whose value is greater than R$ 40,000.00 (forty thousand reais). This is in principle, there are other obligations that have to do with values related to rural activity, capital gain, sale of goods and rights, operations on the stock exchange, etc.
 

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2)     I have a small business, I am registered as MEI (Individual Micro Entrepreneur). I do not need to present my declaration.

A: This statement is incorrect. There are cases that must be declared. MEI is a Legal Person different from the Physical Person. The MEI declaration of income tax is until the 31st of May. In principle, it is not necessary to declare a personal tax, but if you have annual income above the ceiling of R$ 40,000.00, you are obliged to present your declaration. 

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3)    I don't have a MEI, I have a property and I have profits for renting the same on a monthly basis and set the risk of exploitation as a hotel pool. (Booking, TripAdvisor, Trivago, etc.). Do I need to declare the income for this concept?

A: If the duda refers to the year 2018, I regret to inform you that you are missing and late. These incomes must be declared monthly through a specific guide to pay tax in case the value exceeds the minimum. You must urgently consult a professional to avoid a 200% fine after declaring the tax on income. This situation has to be answered before sending your declaration.
 

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4)    Do I have income above BRL 28,559.70 but I have property with a value greater than BRL 300,000.00 Do I need to make a declaration?

A: Whoever has a chance to exceed BRL 300,000.00 is obliged to file a tax declaration for earnings. Clarifying that buildings, vehicles, antiques, works of art, jewelry, etc., must be included.

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5) Does it affect me in something, for the purposes of income tax, if I contract a billing machine with Debit/Credit cards?

A: I use a “Atención” Credit/Debit Card “Machinita”. If you are registered as a physical person linked to the CPF, you must be very careful with this, probably if you exceed the values informed, you are obliged to make the declaration.

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6) During the calendar year I received Emergency Aid from the Government, does something affect me?

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A: If during the 2020 calendar year you receive other income amounting annually to R$ 22,847.76, you are OBLIGED to deliver the income tax declaration before 04/30/2021.

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7) Carry out operations on the stock exchange or on investment companies, if the inverted value is very low, do you not need to declare it?

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A: Regardless of the inverted value, you must perform your declaration independently of the value.

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It is important to know that those who do not make their statement incompletely may be criticized for their statement and must carry out the correction of the misma in a timely manner. Anyone who does not file his tax declaration in the informed term is subject to the payment of a fine of 1% of the tax due per month of delay up to the limit of 20% of the amount with a minimum amount of R$ 165.74.

Be very careful with this, you have to remember that when you have values withheld you may have the right to refund in some situations. If you have had income and your payment source, the information will be carried out once more if your statement is not declared to be criticized. Let us remember once more that this situation must be resulted in time and form.
 
 
Pablo German Serrano
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CRC 10.473/O-9