Government extends income tax exemption to more workers, pensioners
The federal government published on Tuesday (6) a provisional presidential decree increasing the income tax exemption for individuals earning up to two times the minimum wage per month, equivalent to R$2,824. As a result, 15.8 million Brazilians will be exempt from the individual income tax, according to the Ministry of Finance.The ministry explained that the change applies "to employees, self-employed people, retirees, and Social Security beneficiaries, as well as other individuals who receive up to R$2,824" per month. The Ministry of Finance notes it is the second increase in the Income Tax exemption range promoted since the beginning of the current administration. "On May 1, 2023, the first adjustment to the Individuals Income Tax table came into force after eight years," the ministry wrote in the document. The exemption cap, which was frozen at R$1,903.98 since 2015, rose to R$2,640 at first and now to R$2,824.With the decree, the government changed the first range of the Individual Income Tax monthly progressive table, increasing the cap for zero rate by 6.97%. Therefore...
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