Despite appearing to be “the same thing”, the documents have important differences. The main one refers to deductible expenses for health, education, private pension and dependents.
Tax consultant and president of Fradema Consultores Tributários, Francisco Arrighi explains that the advantage of the simplified declaration is that it is more practical, as the taxpayer does not need to detail all deductible expenses.
“If you have few (expenses) and are within the limit of R$16,754.34, it is only worth making the simplified declaration. Remembering that the deduction limits have not changed, remaining the value of the deduction per dependent (R$ 2,275.08), the annual limit for educational expenses (R$ 3,561.50) and the annual limit for the simplified discount (R$ 16,754 ,34)”, he highlights.
Furthermore, the simplified declaration guarantees automatic deduction without the need for proof of 20% of the tax amount to be paid — highlighting that the deducted amount is limited to R$16,754.34 for any income range.
“Income tax is calculated by applying a percentage to the calculation base. The calculation basis is everything the person received from taxable income minus deductible expenses. In other words, the smaller the calculation base, the lower the tax payable. The higher the deductible expenses, the lower the tax payable”, informs Gustavo Rodrigues Silva, tax lawyer at Ballstaedt Gasparino Advogados.
Also according to Rodrigues, the complete declaration is recommended for those who have many expenses that can be deducted, as it may result in a higher refund amount or lower tax payable. However, this model requires greater control of expenses calculated in the calendar year, which must be proven if requested by the Revenue.
For those who do not have an exact idea of their income, the Federal Revenue program helps to indicate the best path to follow.
“Using the Declaration Generator Program (PGD), through the My Income Tax application or through the e-CAC electronic portal, the taxpayer will find fields called “Simplified Discount” and “Legal Deductions” when filling out the declaration on one of these platforms. This makes it easier to compare calculations and choose the most advantageous model”, says the lawyer.
Documents and deductions
The next step is to know which documents to have on hand when filling out the declaration. To do this, professor Cristiane Valente, from Unigranrio, recommends filling out all deductible expenses as if you were choosing the full declaration. Then, check the taxation option in the program, which will show the tax to be paid or refunded on each model.
Once this is done, the taxpayer needs to have the following documents on hand: declaration number from the previous year (only for those who declared income tax in 2023), CPF of dependents (of all ages), taxable and non-taxable income, proof of medical expenses and educational. private pension reports, proof of purchase/sale of assets (vehicles, properties, etc.) and fixed or variable income investment reports (Tesouro Direto, CDB, Stock Exchange).
“For those who are declaring for the first time, it is necessary to fill in data such as CPF, voter ID, residential and professional data”, points out the teacher.
Regarding what can be deducted from Income Tax, Valente makes some observations. In health there are no deductible limits — spending on a wide variety of services can be inferred — while education (R$3,561.50) and dependents (2,275.08) there is an annual limit.
However, you need to be careful, as not all medical expenses can be deducted, such as expenses covered by the insurance policy and those with tests and medicines purchased in pharmacies (even with a prescription).
With regard to education expenses, language courses, extracurricular activities (such as gym, sports, dance or music), school supplies, transportation to the educational institution, devices such as tablets and other technological devices, pre-university exams are not deductible. , school trips and exchange trips.
Changing the type of declaration
An interesting observation is the possibility of changing the declaration option from complete to simplified even after sending the declaration. To do this, it is enough for it to be delivered within the deadline established by the Federal Revenue Service for the delivery of the Income Tax declaration.
“If the taxpayer realizes that the Simplified option may be more advantageous after sending the complete declaration, there is the option to rectify the declaration to change the chosen option. To make this change, you need to access the program used to make the declaration and follow the steps to rectify the document”, explains Hulisses Dias, specialist in finance and investments.
However, Dias warns that it is important to be aware that the change may result in differences in the amount of tax payable or refunded, depending on the deductions applied in each declaration model.
Dias highlights that there is no model that the Federal Revenue considers more correct. What happens is that the tax authorities recommend the use of a pre-filled declaration, for practicality and to avoid errors when typing, but there is no debate between simplified or complete as this depends on each person’s salary.
According to experts, the important thing is to be accurate when reporting the numbers and not omit income or deductions. In case of an error, there is a chance of falling through the cracks and attracting penalties — from fines and interest on the tax due and even legal proceedings.
“Therefore, it is essential to fill out your declaration accurately and honestly, choose the declaration model that best suits your situation and keep all the necessary documents and proof to attest to the information provided, in case the IRS requests an audit”, explains the Professor Valente.
