Bolsonaro Aims to Raise Personal Income Tax Threshold to R$3,000 per Month

RIO DE JANEIRO, BRAZIL – President Jair Bolsonaro announced yesterday, December 21st, that the threshold above which taxpayers must declare Individual Income Tax (IR) will be raised.

The decision, he said, is in its final stages. The ceiling would rise from the current R$2,349.98 (US$587.5) to R$3,000. As a result, those earning up to this amount per month would be exempt from filing returns with the tax authorities.

“We are in the final stage in order to see if we can raise the income tax limit to R$3,000. Tostes [José Tostes, Special Secretary of the Federal Treasury], is making projections”.

“Whoever pays income tax within that band will get it all back in March and April next year. If we can avoid this huge task for the treasury, for the guy who sometimes has to ask a neighbor, a son, has a tough time filling out their income tax form, the limit is R$3,000.”

“I believe the ideal would be R$5,000, but then the impact is huge. But if it’s R$2,000 and it goes up to R$3,000, it’s definitely starting to signal less bureaucracy,” the president said during an interview at Alvorada Palace, his official residence.

The president expects the change to be valid for the next IR filing date in 2020. “This has to be done this year, to [be valid] next year,” he said.

Currently, all taxpayers with an annual income above the threshold set by the Federal Treasury, which corresponds to an annual salary of R$28,559.70, an average of R$2,379.98 per month, are required to file a tax return.

Another compulsory case provided for in the legislation includes taxpayers who received exempt income, not taxable or taxed at source, in an amount exceeding R$40,000.

Balance

The interview with the President of the Republic lasted just over two hours. Reporters covering the Presidency were invited on Friday, December 20th, to take stock of the government’s first year.

Bolsonaro praised the work of some of his main ministers, such as Paulo Guedes, of Economy; Tarcísio Freitas, of Infrastructure; Teresa Cristina, of Agriculture; Marcelo Álvaro Antonio, of Tourism; Sérgio Moro, of Justice and Public Safety, and Gustavo Canuto, of Regional Development.

When asked about his government’s greatest achievements so far, he mentioned the absence of corruption cases in the federal administration. “We are glad no corruption cases have emerged. It can happen, we don’t know, but nothing has come up. There’s a certain vigilance on our part, almost an obsession.”

The president acknowledged that there is pressure from allies for positions and that some are met. “It’s not because a politician has appointed someone that makes them a bad character, there are good people appointed by politicians”.

Nevertheless, he said he had discretion in the composition of his team. “It was very good for me to have the freedom and hold the pressure to appoint who is on my side”.

Regarding next year’s prospects, Bolsonaro said that the focus is on advancing the economy and encouraging entrepreneurship.

“The economy is the flagship. What we want most is to make life easier for those who want to undertake business. We need to launch the ‘Minha Primeira Empresa’ (‘My First Company’) plan to get that out of the opposition’s speech. You want to start a company, you’re going to start it. Salaries are low, you pay R$5,000, R$10,000, R$30,000 for whoever comes to work in your company, this is the idea”.

Source: Infomoney