Every year, millions of taxpayers, including rural producers - whether individuals or companies - need to settle accounts with the lion, to keep up with the Federal Revenue and avoid falling into the government's fiscal grid. In 2021, the period for sending Income Tax Returns to Individuals started in March and went on until the end of May.
For those who fit in as a Legal Entity, the deadlines were different, as for this audience the periods are usually quarterly and annual. This is because the income tax of companies is determined by the way they are taxed, being a little more complex. In this case, it must be done via Accounting and Fiscal Bookkeeping (ECF), a specific model for Legal Entities that choose Actual Profit and Presumed Profit.
Companies that fall under the Simples Nacional have simplified payment of the tax due. For these, the IRPJ is calculated on the billing and contained within the Collection Document of Simples (DAS), which includes other taxes as well.
However, many rural entrepreneurs end up not realizing the attention that should be given to the quality of information and requirements included in the Declaration, which can cause difficulties and headaches in the future, generating actions by the inspection body, the Federal Revenue. With this in mind, we prepared exclusive content, with the help of the Safras & Cifras team of specialists, to answer the main doubts on the subject. Check out!
What is Income Tax?
Income Tax (IR) is a federal tax levied on the income of citizens and companies. That is, everything you received as income or invoiced in the year is subject to Tax and must be declared to the tax authorities, remembering that in the case of Legal Entities, the IRPJ may be levied on the positive result, on the billing and/or on a presumption of profit.
Who is exempt?
Persons who do not meet any of the above criteria are not required to make the Declaration. Also exempt are those who appear as a dependent Declaration of another natural person, where their income, assets and rights have already been informed.
In addition, the citizen who has possession or ownership of property by law is not required to declare as long as the common property has been declared by the spouse or partner. It is noteworthy that the total value of these goods cannot exceed R$300 thousand, on December 31st.
When do I have to file the 2022 Income Tax Return?
The Internal Revenue Service has not yet released the dates for making the Declaration in 2022, but the deadline usually occurs in the first half of the year. Therefore, it is important to be careful not to miss the period or end up with little time to complete the entire process.
How the Declaration for Individual Rural Producers works
If in the last fiscal year (2021), you had annual taxable income with an amount above R$ 28,559.70 or non-taxable income (labor indemnities, savings income, donations, etc.) above R$ 40 thousand, you must file the Declaration of Income Tax.
It must also declare who:
• Made a profit on the sale of real estate, for example;
• Obtained gross revenue above R$ 142,798.50 with rural activity or had access to the sale of assets; invested in the stock exchange or similar; received an annual amount above R$300 thousand, accounting for all goods; or sold some property.
• Performed stock exchange transactions, purchase and sale of shares;
• Possessed possession or ownership of assets or rights, including bare land, with a total value exceeding 300 thousand reais.
How should I make the declaration?
In addition to the requirement mentioned above, rural producers must pay attention to the organization of their documents and formalize everything that occurred during the year, including all costs and investments made; if areas are leased and the payment of this lease, which is an expense of rural activity and must be informed in the Income Tax Declaration.
ATTENTION: the acquisition of vehicles, machines and implements can be used 100% as a rural activity expense in the year of acquisition. It is also important that you correctly indicate the classification of vehicles used as utilities in rural activity, remembering that the sale of these is considered a revenue from rural activity and must be informed. For this, proof through documents and correct registration in the Declaration is required.
Every rural producer needs to fill in all the properties explored, the type of exploration and his participation in the property in the Rural Activity form of the Income Tax Declaration. The statement must contain the detailed income and expenses, and the balance sheet of financing and loans with financial institutions.
The result of the rural activity, when positive, will integrate the calculation basis of the amount to be paid in the tax. When negative, it constitutes a compensable loss, provided they are recorded in a Cash Book. In addition, in the Rural Activity Result Calculation form, the rural producer who presents losses from previous years, to compensate for this, must use the option for the result and not arbitration.
I don't know where to start, now what?
The complexity of the entire process lies in the interpretation of the legislation, as changes and updates are constant. In this sense, it is essential for the business that throughout the year there is constant monitoring, through good planning of accounting control and tax management.
Ideally, you should count on the help of a professional or specialized company - such as Safras & Cifras -, especially in the case of rural producers, since their declaration is a little more complex and, in addition, if they have equal income or more than 4.8 million, they need to deliver the Rural Producer's Digital Cash Book.
As stated, the ideal is to have the support of specialists, such as Safras & Cifras, which serves rural producers, Individuals and Companies, in a modern and practical Business and Rural Management model, full of new alternatives for excellent business management.
Inside Capital Gain
If you have sold an asset recently, it is necessary to check whether you have correctly calculated the Income Tax on Capital Gains. This applies to any and all assets or rights that are sold for a value greater than the one acquired.
If the sale is a rural property, it is necessary to take into account what says in article 19 of Law 9,393/96, responsible for regulating the Rural Land Tax (ITR), and which also brought an innovation on the calculation of the IR in case of rural properties.
According to the rule, the calculation of Capital Gain may consider, for purposes of calculation, the difference between the Value of Naked Land (VTN) declared in the year of acquisition and in the year of disposal.
Based on the above information, the lower the acquisition cost, the greater the result of the capital gain, as this is calculated based on the difference between the acquisition cost and the disposal cost.
Let's take an example: if in 1998 a property was acquired for R$ 800 thousand and, in 2020, the same property was sold for R$ 1.8 million, the difference between the acquisition cost and the sale cost will be R$ 1 million. In this case, the seller will pay 15% tax on this difference, ie on this “Profit Real Estate”.
ATTENTION: the legislation provides that, when an individual sells a good or right, he/she must calculate the Income Tax on Capital Gains in the month following the sale of the rural property, through the Capital Gains Calculation Program 2020 (GCAP2020) , available on the RFB's website. Income Tax must be collected by the last business day of the month following the sale, through the Federal Revenue Collection Document (Darf), issued by GCAP2020.
Rule change?
In 2021, the Federal Government announced that changes would be made to the Income Tax Declaration for 2022, but recently the Senate announced that the reform of the Income Tax should be for 2022, despite the text having been approved by the Chamber. If the proposal passes through the Senate, the initial trend is to reduce the tax for companies, create a tax for dividends and change the rules for Individuals.
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Created in 1990, in the city of Pelotas, Rio Grande do Sul, Safras & Cifras works for agribusiness families, bringing solutions in Succession Planning, Governance, Tax Planning and Economic and Financial Management. Learn more by accessing safrasecifras.com.br.. 
