COMO DECLARAR RESCISÃO NO IMPOSTO DE RENDA | IR Bot

Summary

In this video, Vittor Gadelha, a tax attorney, walks you through how to declare severance pay in your Brazilian income tax return. He covers the three main categories of severance payments—exempt, taxable, and subject to exclusive taxation—explaining how each type should be reported. The video also offers a step-by-step guide on using the income report from your employer, what to do if the report is incorrect or unavailable, and how to navigate special cases like payments received after the calendar year ends. The content is a useful resource for individuals handling their own tax filings.

Takeaways

• 😀 You need to declare all severance pay (verbas rescisórias) in your Income Tax Declaration, even if some of them are exempt from taxation.
• 😀 Severance pay is divided into three categories: exempt, taxable, and subject to exclusive taxation.
• 😀 Exempt severance pay includes things like indemnified prior notice, indemnified vacation, and accident-related compensation.
• 😀 Taxable severance pay includes balance of salary, worked prior notice, bonuses, and gratuities, subject to the progressive tax table.
• 😀 Severance pay subject to exclusive taxation includes things like profit-sharing, and some forms of 13th salary (Christmas bonus).
• 😀 Always prefer to use the Informe de Rendimento (Income Statement) from your employer over the Term of Termination for declaring your severance pay, unless there are errors or it’s not provided.
• 😀 Employers are legally required to provide the Informe de Rendimento by the end of February, even for employees who have left during the year.
• 😀 If the Informe de Rendimento is incorrect, first try to resolve it with your employer before considering using the Term of Termination for your declaration.
• 😀 When you use the Term of Termination, break down the severance pay according to its taxation category: taxable, exempt, or subject to exclusive taxation.
• 😀 If you worked for a domestic employer, they are also required to provide the Informe de Rendimento, just like a corporate employer.
• 😀 If severance pay is received in the following year after termination, it does not need to be declared in the previous year's tax declaration.

Q & A

What is the first step when declaring severance pay in the income tax return?

The first step is to check whether you are obligated to file an income tax return. If you are unsure about this, you should review the video or resources that explain the conditions for filing. If you determine that you need to file, all severance-related payments should be reported, even if some of them are exempt from taxes.

How are severance payments categorized for income tax purposes?

Severance payments are divided into three categories: 1) Exempt payments (e.g., indemnified notice period, indemnified vacation, and accident compensation), 2) Taxable payments (e.g., salary balance, worked notice period, and bonuses), and 3) Payments subject to exclusive or final taxation (e.g., participation in profits and certain bonuses).

Do I need to declare exempt severance payments in my income tax return?

Yes, even if a severance payment is exempt from income tax (like indemnified vacation or notice period), you must declare it in your income tax return. Exempt status means you don’t pay taxes on it, but you still have to report it.

What should I do if my employer does not provide the income statement or provides incorrect information?

If your employer does not provide the income statement or provides incorrect data, you should first try to contact them and request an updated or correct statement. If they refuse or fail to respond, you can proceed with the declaration using the severance statement from your termination documents, though this may cause issues with the tax authority.

How should I report severance payments if my employer does not provide an income statement?

If you don’t receive an income statement, you will need to use the termination document (termo de rescisão). Identify each type of payment (e.g., salary balance, severance bonuses, vacation) and apply the correct tax treatment: exempt, taxable, or subject to exclusive taxation.

What is the recommended document to use when declaring severance pay?

The recommended document is the income statement (informe de rendimentos) issued by your employer, as it is a direct reflection of what was reported to the tax authorities. Only use the termination document if the income statement is not provided or is incorrect.

What is the process for entering severance payments into the income tax return software?

In the income tax return software, you need to enter severance payments under the 'Income from Exempt and Non-Taxable Sources' section. Select the relevant codes, such as the one for 'indemnities from termination' (code 04), and provide the required information like the source payer's CNPJ and the payment amounts.

How should I handle taxable severance payments in the income tax return?

Taxable severance payments should be entered under the 'Taxable Income from Legal Entities' section. You will need to list all amounts such as salary balance, bonuses, and overtime, as well as any other taxable components like commissions or additional hours worked.

What should I do if I have payments from a domestic employer and they fail to provide an income statement?

If your employer is a domestic employer and fails to provide an income statement, the process is the same as with any employer. You should contact them to request it, but if they do not provide it, you will need to report the information based on the termination document, applying the appropriate tax treatment for each type of severance payment.

What is the tax treatment for severance payments like 13th salary or vacation?

The 13th salary and related payments (like proportional 13th salary or vacation payouts) are subject to exclusive taxation. This means that income tax is withheld by the employer at the time of payment, and this is considered final tax, with no need for further adjustments during tax filing.