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AP9.1.Localization Brazil_Change Progressive Table And Deduction Applied In The Basis For Calculating Withholding Tax (IRPF) (Doc ID 2965459.1)

Last updated on OCTOBER 30, 2023

Applies to:

PeopleSoft Enterprise FIN Payables Brazil - Version 9.1 to 9.1 [Release 9]
Information in this document applies to any platform.

Symptoms

 After the publication of Provisional Measure No. 1,171, of April 30, 2023, there was a change in the progressive table of individual income tax (IRPF) and in the deduction applied in the calculation base and is asking about what configuration is needed to consider this new scenario?

They have already parameterized the ranges in the retention rules, but they understand that this is not enough.

Additional Information:
The income tax calculation base may have a Simplified Discount deducted in the amount corresponding to 25% of the maximum value of the zero rate range of the progressive table, which increased from R$ 1,903.98 to R$ 2,112.
That is a simplified discount of BRL 528 (BRL 2,112 x 25% = BRL 528).

Therefore, as of May 2023, the amount of BRL 528 or other deductions that were already applied may be deducted from the income tax calculation base, always whichever amount is greater (for example, the discounted INSS and/or deduction for the number of dependents).
In practice, the IRPF exemption (zero rate) for the Simplified Discount will be for an amount of up to R$2,640 (R$2,640 - R$528 = R$2,112).

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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