On march 15th, the period when Brazilian citizens must file their personal Income Tax (IRPF) in 2023 begins. This tax collects money from the income received by citizens from their work.

The government’s objective is to use the amount collected for IRPF to reduce inequality in Brazil. This is why the tax rate is higher for people who earn more and lower for those who earn less. People list how much they have earned and all their financial activities over the past year on the income tax return.

Based on the filing, the government evaluates, for example, whether the amount of tax charged each person was correct. This way, the Federal Revenue can refund (based on the IRPF ) people or charge more tax, depending on each case.

This year, the Revenue department introduced some changes. One of these is that people who choose to receive the IRPF refund via Pix (using their CPF or personal tax ID) will have priority when receiving their refund- after priority groups such as the elderly and people with disabilities.

Not everyone, however, needs to file taxes. On the Federal Government website, there is a complete list of requirements that sets out who must file – use the QR code below to view. The Revenue expects to receive between 38.5 million and 39.5 million tax filings by the May 31st deadline.

Glossary

Tax: is the amount paid by people and companies to the government (of a country, for example). This money is earmarked for different purposes that benefit society, such as building bridges and providing health services. Those who do not pay their taxes can be subject to penalties, which include being fined.

Federal Revenue Service: manages and supervises taxes paid by Brazilian citizens as well as goods coming through the country’s borders.

Sources: CNN, G1, IRS and Serasa.

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