Tax Season Began in Brazil

Tax season in Brazil is approaching, and it’s time to get prepared. The deadline for filing your annual personal income tax return (Declaração de Ajuste Anual do Imposto de Renda Pessoa Física or DIRPF) for calendar year 2024 with the Brazilian Revenue Service (Receita Federal) is May 30, 2025.

Whether you need to file an income tax return depends on your residency status, income, and assets. Remember that Brazil - like the United States - taxes on worldwide income.

Brazilian residents must submit a return if they (1) earned more than BRL$33,888 in 2024 or (2) held more than BRL$800,000 in assets as of December 31, 2024. If either applies to you, start gathering your financial records now to ensure you have sufficient time to file.

To help taxpayers, the Receita Federal offers a pre-filled tax return. This form includes financial information already available to the government, such as income from employers, data from financial institutions, and other income sources. While this feature can save time, you should carefully review the data for accuracy before submitting the return.

Filing your taxes on time is crucial to avoid penalties. Late submissions incur a fine of 1% per month, up to 20% of the total tax due.

Finally, don’t forget that filing an annual income tax return is just one requirement for Brazilian residents. Depending on the value of your assets abroad, you may also have to file a CBE (Capitais Brasileiros no Exterior) declaration with the Brazilian Central Bank.