President Luiz Inácio Lula da Silva will sanction this Wednesday (26) the law that expands the exemption range from Personal Income Tax for those earning up to R$5,000 per month and establishes discounts for incomes of up to R$7,350 per month. 
According to the government, around 15 million Brazilians will no longer pay income tax with the new law. The legislation also increases taxation on high incomes, starting at R$600,000 annually.
The event will be held at Palácio do Planalto, at 10:30 am. The Ministry of Finance’s technical team will detail the measure to the press.
Changes
Forwarded by the federal government in March to the National Congress, the text of the law was approved in October by the Chamber of Deputies and at the beginning of the month by the Senate.
Currently, the IR exemption only applies to those earning up to R$3,076 (two minimum wages). The new legislation will exempt, from January next year, income tax on monthly income of up to R$5,000 for individuals.
For those earning between R$5,000.01 and R$7,350, there will be a partial reduction in the amounts to be paid – the less you earn, the greater the reduction.
Taxpayers with income above R$7,350 will not be covered by the measure.
To compensate for the loss of revenue due to the exemption, the project provides for an extra progressive rate of up to 10% for those who receive more than R$600,000 per year, the equivalent of R$50,000 per month. The text also establishes taxation for profits and dividends remitted abroad at a rate of 10%.
