People are lost and confuse the new law with the old law, what stays and what doesn’t. The first thing to be clear is: the IRPF 2024 Normative Instruction has not yet been released.
Some media are causing confusion by publishing generic rules that applied last year.
What we actually have is the Organic Income Tax Law, which regulates the forms of taxation – which will remain unchanged. Therefore, if there are any changes in IRPF 2024, they will be limited to delivery times, and not to what is taxable.
For example, in 2023, the deadline for declaring IRPF was from March 15 to May 31. It appears that, taking into account the pre-completed declarations, this period will be adhered to. The complexity of cross-information makes it difficult for the IRS to pre-populate it by March 15.
⚠️IMPORTANT: This is just a prediction. The RF can change the rule at any time.
What changes in the IRPF Declaration 2024 (so far) Anyone earning up to two minimum wages will benefit from the exemption.
Now the limit is R$2,259.20, compared to the previous R$2,112.00.
This will benefit taxpayers with a monthly income up to R$2,824.00, as they will be exempt from income tax upon application of the simplified rebate of R$564.80. As a result, the monthly calculation base for these taxpayers will be exactly R$2,259.20, the maximum limit of the zero rate range in the new table.
It is important to emphasize that the R$564.80 discount is an option, and those entitled to larger discounts under current legislation (such as social security, dependents and food) will not be affected.
What will NOT change in the IRPF 2024 statement
IRPF 2024 relates to income that occurred in 2023, between January 1, 2023 and December 31, 2023.
What applied to the taxation of crypto assets during this period?
All crypto assets – including cryptocurrencies – were taxed together under the previous rules:
Exemption of R$ 35,000.00
Exchange tax
Non-compensation of losses.
⚠️ It is important not to confuse one with the other:
IRPF 2024 refers to 2023. Last year the rule was the old one: it did not matter whether the broker was domestic or foreign, until 12/31/23 the calculation was unique.
Further…
You cannot compensate for the loss of foreign exchange in 2023 because the new law came into effect in 2024.
You are still exempt for resident aliens in 2023.
Which GCAP should I use?
In the IRPF 2024 return, you must import the GCAP (Capital Gains Calculation Program) file for 2023 – which should have been completed throughout the year – which reports the taxable capital gains on the sale of crypto assets.
What should be the GCAP to be completed by 2024?
It is the GCAP of operations performed between January 1, 2024 and December 31, 2024.
⚠️ IMPORTANT: GCAP 2024 only records operations conducted with national brokers.
Apparently, the completion of the transactions carried out with foreign brokers will be done separately in next year’s adjustment return, which is likely to have a specific field for financial investments abroad.
Therefore, there will be no GCAP for foreign brokers, while the monthly filling format will remain for national exchanges. At the moment, foreigners are not taken into account, pending the 2025 definitions.
Whether or not to do the annual IN in 2024?
No, because one has nothing to do with the other:
IN 1888 continues monthly. This is the calculation of the tax paid annually on the foreign currency.
The capital gains income exemption rules apply to national brokerage firms. If you operate abroad, there is no exemption limit.
Offset of losses will only be allowed by foreign brokers in 2024, with completion in the 2025 IRPF.
What is it like in 1888?
Many people think that they would be exempt from filing income tax returns because they have operated exclusively in national brokerage firms and because they have already filed the IN 1888.
⚠️ Even if you are only active in national real estate, you are not exempt from income tax. IN 1888 and IRPF are two different statements.
We will soon publish an exclusive article on this subject.
Keep an eye on the Declarando Bitcoin blog. Once the IRPF 2024 program is released, we will introduce any new rules or endorse the old ones.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
