Published in 03/04/2017, Jornal Folha de S. Paulo
Adriana and Bruno have been married for some years under the partial community property regime. As the two have been working since single times, they are used to file separate income tax returns.
Adriana has left the company she worked for at the end of 2015. And that wasn’t the only important event in her life. Her mother died and left her a real estate as inheritance, with tenant. Thus, Adriana started to receive rent income of this property.
As she had no income from work, the couple plans to file a joint income tax return, considering Adriana as dependent on Bruno. But the decision is not that simple. I sought the qualified opinion of the lawyer and financial planner Luciana Pantaroto on the subject.
Brazilian Federal Revenue classifies the income we receive into:
1) taxable;
2) exempt and non-taxable;
and 3) subject to exclusive taxation or definitive.
Only the taxable income is taken into account to determine the amount of income tax payable or refunded.
Income from rent is classified as taxable. So, the best choice will be the one that provides the lowest tax to pay and, for that, it is necessary simulate the two tax returns, joint or separate.
Luciana remembers how it works: the Federal Revenue program adds up all the taxable income (taxable income only) and deducts 1) deductible expenses (except the directly deducted from the tax due); or 2) the simplified discount, to define the calculation basis on which the rate defined by the progressive table in ratio of the income range of each taxpayer. The program then calculates the tax due.
If the amount of tax paid via monthly tax (“carnê-leão”) or withheld at source throughout the year is higher than the tax due, you can celebrate, as the tax paid in excess will be refunded. If the tax paid is less than what is due, prepare your pocket to pay the difference.
Returning to the case of Bruno and Adriana… Bruno received income from his salary (except bonus and 13th) of R$ 85,000, and Adriana, rent income of R$ 15,000.
Considering that the couple does not have relevant deductible expenses, what is more advantageous from a fiscal perspective? Should they submit a joint tax return, considering Adriana as dependent on Bruno, or should each one files a separate tax return?
If they opt for the joint tax return, they must report all income tax received by the couple, Bruno’s salary and Adriana’s rent, totaling R$ 100,000. As there are no relevant deductible expenses, they will opt for the simplified discount, 20% on taxable income, limited to R$ 16,754.34.
Thus, the calculation basis for the tax will be the difference between the income and the simplified discount (R$ 83,245.66), and the tax due will be R$ 12,460.24.
If they choose to file the tax returns separately, Bruno will report his taxable salary income, totaling R$ 85,000 and will use the discount simplified of R$ 16,754.34. Thus, the calculation basis for the tax will be the difference between the income and the simplified discount (R$ 68,245.66), and the tax due will be of R$ 8,335.24.
Even though Adriana is not required to submit the tax return, due to the amount of her taxable income, she may report only her rental income of R$ 15,000.
According to the progressive table, those who received taxable income up to R$ 22,847.76 are exempt from paying income tax. Thus, Adriana will not have tax due for the year 2016.
Comparing the two options, the advantage of filing a separate tax return is evident. If they choose to submit a joint tax return, the tax owed by the couple will be more than R$ 12,000. If they choose to file their tax returns separately, the tax due by the couple will be approximately R$ 8,000. A substantial saving for the couple!
