The most recent version of the reforms to the Plan Fiscal (tax reform project), presented to the Legislative Assembly on Thursday, February 9, maintains the proposal to create a global income tax, but clarifies that this will apply only to companies and individuals with lucrative activities, already obligated to declare their income and expenses.

In this way, salaried people who only receive surpluses from a union, for example, or investment interests on savings, will only have to pay the tax on the respective income class, but will not have to declare or pay the global income.

The new tax changes from a cellular income system (different tax rate applied to different type of income), to one of global income where all the income is added and the tax, is calculated on it

Under the concept of global income, taxpayers must add together different income they receive, subtract the expenses and on that difference pay the income tax.

Stay up to date with the latest stories by signing up to our newsletter, or following us on Facebook.