By Tamires Vitorio
MP 1.171/2023 aims to expand the income tax (IRPF) exemption range for people earning up to R$2,640 monthly.
The taxation of income abroad seeks to compensate for losses with the increase in the exemption range of IR.
WHAT MP 1171 SAYS
The MP (Provisional Measure) states that two collection ranges will be adopted.
One will be 15% on the annual portion of income exceeding R$6,000 and not exceeding R$50,000.
The other will be 22.5% of the annual income that exceeds R$50,000.
Income below R$6,000 will not be taxed.
The new taxation will come into force on January 1, 2024, according to the text of the MP, and the income will have to be declared in the Income Tax from next year.
The investments that now will be taxed are usually made in offshore and tax havens, where taxation is practically nil, according to the government.
The Federal Government will collect R$3.2 billion just this year with the measure, covering the impact of the increase in the income tax exemption range.
Concerning the update of the values of the monthly table of IRPF, it is estimated a reduction of revenues in 2023 of around R$3.20 billion (for seven months), 2024 of R$5.88 billion, and 2025 of R$ 6.27 billion.
With information from Bloomberg
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