Taxpayers are having a surprise when it comes to informing the assets in the Individual Income Tax Declaration 2022. Without warning, the Federal Revenue changed the identification codes this year. Numbers used for many years in the “Assets and rights” form have been changed, causing difficulties when filling in.
Because of the standard operation at the Federal Revenue, taxpayers were only notified of the change on March 7, when the deadline for sending the declaration began. Because of this, the codes that came in the earnings reports provided by employers and financial institutions could not be used.
Those who imported the 2021 declaration to fill out the Income Tax had the codes automatically changed by the generator program for the goods reported last year. However, the inclusion of items that were not included in the previous declarations took longer.
“The new menu has become more organized, intuitive, especially for lay taxpayers. The problem is that the change was made without notice and many financial institutions did not have time to update their earnings reports”, says Diego Figueiredo, Operations Director at Grana Capital. Fintech, which offers an application to automate the management of Income Tax for stock exchange investors, saw an increase in doubts when filling out this year’s declaration.
With the change, the “Assets and rights” sheet was completely reorganized. Items such as vehicles, financial investments and real estate gained new codes. Even deposits in current accounts and savings accounts started to be identified with different codes.
The changes in the codes did not cover only the equity information. In the “Payments Made” form, in which the taxpayer informs the deductions, the code “38 – Individual Programmed Retirement Fund”, used by those who have supplementary pensions, no longer exists. The data must now be informed in the code “36 – Complementary Pension (including FAPI)”.
groups
There were five main changes in the “Goods and rights” form. First, the codes were divided into nine groups, each with a series of specific items. The taxpayer must now search for the group to which the property corresponds and then choose one of the options that appear.
The groups created by the Internal Revenue Service were as follows:
• Group 1: real estate;
• Group 2: movable assets;
• Group 3: equity interest (shares and capital quotas in a company);
• Group 4: applications and investments;
• Group 5: credits;
• Group 6: demand deposit and cash;
• Group 7: funds;
• Group 8: crypto assets;
• Group 9: other assets and rights.
The second change was the increase in the number of codes. According to the Revenue, there was the elimination of nine little used codes and the creation of 13 codes to reflect more modern investments. The code “99 – Other assets and rights” is available in any of the groups, and can be chosen when the asset does not fit into any of the categories presented.
The complete list of the new codes can be consulted between pages 172 and 175 of the document “Completing Instructions – IRPF 2022 Program Help”, created by the Federal Revenue Service. Because of the standard operation of the agency, the document is only available within the program that generates the declaration, but can be accessed here:
crypto assets
The third change occurred in the detailing of crypto assets. Last year, the IRS had introduced three codes for taxpayers to declare digital assets. This year, taxpayers will have four codes available. This is because the Tax Authorities created a special code for Non Fungible Tokens (NFT), a type of exclusive signature for digital files that can be commercialized.
This year, the taxpayer will have four crypto-asset codes available – REUTERS/Dado Ruvic/Illustration/Rights Reserved
The codes for the group “08 – Cryptoactives” were divided as follows:
• Code 01: crypto-asset bitcoin – BTC;
• Code 02: other cryptocurrencies, known as altcoins. Example: Ether (ETH), Ripple (XRP), Bitcoin Cash (BCH) and Litecoin (LTC);
• Code 03: crypto assets known as stablecoins. Example: Tether (USDT), USD Coin (USDC), Brazilian Digital Token (BRZ), Binance USD (BUSD), DAI, True USD (TUSD), Gemini USD (GUSD), Paxos USD (PAX), Paxos Gold (PAXG) ) and others;
• Code 10: crypto assets known as Non-Fungible Tokens (NFT);
• Code 99: other crypto assets. Encompasses tokens, digital assets not considered cryptocurrencies
income
The fourth change makes the declaration of income associated with each asset or right more agile. Until last year, the taxpayer had to enter the income separately in the form associated with the type of taxation of the item (taxable, exempt and non-taxable income, exclusive/definitive taxation and others).
As of this year, when entering the value of the asset or right on December 31, 2021, the option to inform the income associated with the item will appear. The taxpayer only needs to declare the value that appears in the income report (sent by the financial institution or by the employer) and the generating program will automatically open a field to fill in the corresponding income.
For Diego Figueiredo, from Grana Capital, the change makes life easier for taxpayers with few investments, who can fill out income forms directly on the “Assets and rights” form. “For those who have many assets [e muitas fontes de rendimentos], I recommend following the old procedure and using traditional income sheets”, he advises. “Actually, the IRS is giving one more option to fill in the same information. The more possibilities, the better.”
Details
The last change covered the details in the identification of some assets by the taxpayer. Providing the Renavam number becomes mandatory for cars. The generator program will alert for the absence of the registration number of vessels and aircraft. The building registration number at CEI and CNO is now required.
