DIRF is the Withholding Income Tax Return. Issued by the paying source, which can be either an individual or a company, its purpose is to inform the Federal Revenue of the amounts of income tax and other contributions that were withheld from payments to third parties, in order to avoid tax evasion.

Deadline for submitting the declaration

The declaration must be delivered by 11:59:59 pm on February 28, 2022, through the Receitanet program, available on the RFB website.

Who needs to deliver the DIRF?

Individuals and legal entities, who paid or credited income with withholding tax at source, even if it was only in a single month of the year 2021.

What are the incomes that
must be included in DIRF

The persons required to submit the DIRF must inform, in addition to the beneficiaries whose earnings has been subject of withholding income tax, CSLL (Social Contribution on Net Income), PIS (Social Integration Plan) or COFINS (Contribution for Social Security), the beneficiaries classified under the following conditions, even if they had no withholding tax:

1 – on earnings from salaried work, when the amount paid during the calendar year is equal to or higher than twenty-eight thousand, five hundred and fifty-nine Brazilian Reais and seventy cents (R$ 28,559.70), including the Christmas Bonus;

2 – on work without employment relation, rents and royalties, above six thousand Brazilian Reais (R$ 6,000.00), paid during the calendar year;

3 – from supplementary pension plans and life insurance plans with survival coverage clause – Life Free Benefit Generator (VGBL), paid during the calendar year;

4 – from income earned by residents or domiciled abroad, including cases of exemption and zero rate, referred to in line “c” of item II of art. 2^ofNormative Instruction RFB No. 1.990, of November 18, 2020, which total annual value has been equal or higher than twenty-eight thousand, five hundred and fifty-nine Brazilian Reais and seventy cents (R$ 28,559.70), as well as the respective IRRF;

5 – from income sent by individuals and legal entities domiciled in the country to cover personal expenses, abroad, of individuals residing in the country, on tourism, business, service, training or official missions trips, as well as the respective IRRF, which total annual value was equal to or higher than twenty-eight thousand, five hundred and fifty-nine Brazilian Reais and seventy cents (R$ 28,559.70), as well as the respective IRRF;

6 – from exclusive pension income, equal or higher than twenty-eight thousand, five hundred and fifty-nine Brazilian Reais and seventy cents (R$ 28,559.70), as well as the respective IRRF, paid with exemption from Income Tax Withheld at Source (IRRF) when the beneficiary has cystic fibrosis (mucoviscidosis), active tuberculosis, mental alienation, multiple sclerosis, malignancy, blindness, leprosy, irreversible and disabling paralysis, severe heart disease, Parkinson’s disease, ankylosing spondyloarthritis, severe nephropathy, severe nephropathy, severe liver disease, advanced stages of Paget’s disease (deforming osteitis), radiation contamination or acquired immunodeficiency syndrome, except for that resulting from professional illness, regularly confirmed by an expert report issued by the official medical service of Brazil, the states, the Federal District or municipalities;

7 – of earning exclusive of retirement or retirement income, equal or higher than twenty-eight thousand, five hundred and fifty-nine Brazilian Reais and seventy cents (R$ 28,559.70), as well as the respective IRRF, paid with exemption from IRRF, provided that motivated by an accident at work, or that the beneficiary has cystic fibrosis (mucoviscidosis), active tuberculosis, mental alienation, multiple sclerosis, malignancy, blindness, leprosy, irreversible and disabling paralysis, severe heart disease, Parkinson’s disease, ankylosing spondyloarthritis, severe nephropathy, severe liver disease, advanced stages of Paget’s disease (deforming osteitis), radiation contamination or acquired immunodeficiency syndrome, regularly confirmed by an expert report issued by the official medical service of Brazil, the states, the Federal District or municipalities;

8 – from dividends and profits paid as from 1996, and amounts paid to the titular or partner of a micro or small business, except for compensation and rents, when the total annual amount paid is equal or higher than twenty-eight thousand, five hundred and fifty-nine Brazilian Reais and seventy cents (R$ 28,559.70);

9 – from dividends and profits paid to the partner, whether ostensible or participant, individual or legal entity, of a Company in a Participation Account, regardless of the total annual amount paid;

10 – of the exempt portion of retirement for people over 65 (sixty-five years), including the Christmas Bonus of the exempt portion;

11 – from daily rates and allowances;

12 – from values of the financial allowance;

13 – from Indemnities for Termination of Employment Contracts, including under the Voluntary Dismissal Plan (PDV), which total annual income paid is equal or higher than twenty-eight thousand, five hundred and fifty-nine Brazilian Reais and seventy cents (R$ 28,559.70);

14 – from scholarship amounts paid or credited to resident physicians, pursuant to Law No. 6.932, as of July 7, 1981;

15 – from earnings paid in compliance with a Federal Court decision;

16 – from attorneys’ fees to prevailing party paid or credited to holders of the positions referred to in the caput of art. 27 of Law no. 13.327, as of July 29, 2016, of the causes to which Brazil, the authorities and the federal public foundations are part;

17 – from income paid to immune or exempt entities for the provision of goods and services, as provided for in items III and IV of art. 4th and 3rd paragraph of art. 37 of Normative Instruction RFB No. 1234, as of 2012; and

18 – other income from work, exempt or non-taxable, provided that the annual total paid is equal to or higher than twenty-eight thousand, five hundred and fifty-nine Brazilian Reais and seventy cents (R$ 28,559.70).

There is a penalty for not delivering
submitting the declaration?

Yes, but not only for lack of delivery, but also for delivery after the deadline or with some wrong information. Can be:

• Fine of 2% on the value of the specified rates, with limits of 20% and with a minimum value of R$ 200.00 and R$ 500.00 reais for Simples Nacional participants; and
• Irregularity in the CPF, which blocks the individual from performing basic procedures, such as opening bank accounts and participating in public tenders.