The Federal Law 7.713 of 1988 addresses the Income Tax (IR) in Brazil. There are still numerous uncertainties about the specifics of exemptions, which should be reviewed each year before filing taxes.
In this Legis article, we specifically examine the income tax exemption for individuals with serious illnesses, interpreting the SJ Sumula 627.
Which serious diseases are covered by the benefit?
At first, it is crucial to understand that not every person with a severe illness is eligible for the exemption. Only individuals with serious conditions who receive income from retirement, pension, or military service in reserve or retirement are eligible for it.
The Income Tax Act (IR) specifies the specific serious illnesses that qualify for exemption.
- Acquired Immunodeficiency Syndrome (AIDS)
- Mental alienation can be rephrased as psychological detachment.
- Serious heart condition
- Visual impairment, including one-eyed vision.
- Text: Exposure to harmful radiation
- Advanced stages of Paget’s disease (Deforming Osteitis)
- Paraphrased: Parkinson’s Disease is a neurological disorder that affects movement and can cause symptoms such as tremors, stiffness, and difficulty with balance and coordination.
- Multiple Sclerosis is a chronic condition that affects the nervous system.
- Spondyloarthrosis Ankylosing can be rephrased as Ankylosing Spondyloarthrosis.
- Cystic Fibrosis, also known as Mucoviscidosis
- Leprosy
- Severe kidney disease
- Serious liver disease
- Malignant tumor
- Permanent and incapacitating paralysis
- Text: Tuberculosis that is currently active
This shows that the exemption applies solely to patients diagnosed with specific illnesses, as confirmed by medical documentation and tests.
One of the diseases mentioned is Malignant neoplasm, which is a type of tumor caused by the abnormal proliferation of cells in the body and is commonly known as cancer.
This is significant!
Many are unaware that even after the cancer has been cured or removed, the individual will still be entitled to the exemption, providing various opportunities for those no longer affected by the illness.
The subject matter was the focus of numerous trials, leading the STJ to create a summary to clarify any uncertainties and promote comprehension. See the following for reference:
The purpose of the exemption
It is crucial to highlight that the exemption applies to both the monthly salary and the year-end bonus for the eligible individuals.
Moreover, they are also considered exempt items.
- The act of receiving additional financial support in retirement, such as a pension or retirement benefits from a supplementary pension fund.
- the Personalized Retirement Fund (Fapi) or the Flexible Benefit Builder Program (PGBL)
- The funds received for a pension based on a legal ruling, public document, or provision of temporary support for individuals with severe illnesses.
How can I ask to be exempt?
To complete the order, you need to follow the step-by-step instructions.
- Access the My INSS website or application.
- Click on the button labeled “New Order”.
- Please enter “income tax exemption” in the search bar.
- Click on the name of the service or benefit in the list.
- Please read the text displayed on the screen and then follow the given instructions.
Key details:
The entitlement to exemption starts depending on the date when the illness was acquired, therefore, the official medical report must provide clarification on this matter.
According to the report, it will be required to adhere to the following guidelines.
- If the disease began after retirement, the right to exemption begins at the constant date in the report.
- If the disease began before retirement, the right to exemption begins on the date of retirement.
- If the date on which the disease has been contracted does not appear in the report, the right to exemption shall begin on the date of issue of the report.
Regardless of the day of the month in which the diagnosis occurred, it is considered the right of exemption for the whole month.
Can I plead the retroactive receipt?
The Law also determines that retirees, pensioners and military personnel of the reserve and who are affected by some serious illness, are entitled to exemption from the retroactive income tax paid inappropriately for the last 5 years.
Unfortunately, that right is not as easy to achieve as the mere exemption. In order to require the retroactive, it is necessary for the person to place the request by administrative or judicial means.
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