Provisional Measure 1,206/2024 updates the values to be observed for Personal Income Tax purposes starting in February 2024.
The new progressive table is as follows:
Calculation Basis | Tax Rate | Income Tax Deduction Portion
Up to R$ 2,259.20 | 0 | 0
From R$2,259.21 to R$2,826.65 | 7.5% | R$169.44
From R$ 2,826.66 to R$ 3,751.05 | 15% | R$ 381.44
From R$ 3,751.06 to R$ 4,664.68 | 22.5% | R$ 662.77
Above R$ 4,664.68 | 27.5% | R$ 896.00
This is a monetary correction of 6.97%, based on the comparison of the table in force in 2023 with that approved in MP 1,206/2024.
Although welcome, this update is still far from bringing about a full recovery in view of inflation over time.
Just to give you an idea, in January 1996 (according to art. 3 of Law 9,250/1995), the remuneration range subject to a zero rate was R$900.00. If the real inflation of the period were recognized by the IGP-M from January 1996 to December 2023, these same R$900.00 would represent approximately R$8,100.00, according to the “citizen’s calculator”, available on the website of the Central Bank of Brazil.
The practical consequence of failing to fully recognize the inflation observed during the period is increased revenue, resulting from the inclusion of taxpayers in the income tax brackets at higher rates, when, in fact, they should be subject to lower rates, or even zero. In any case, the 6.97% monetary correction already represents something. Better than nothing.
