As the deadline for submitting the 2025 Income Tax return approaches, Brazilian taxpayers are reminded of the importance of accurately declaring their fixed income investments. The submission period runs from March 17, 2025, to May 30, 2025, and those who fail to comply may face penalties. Understanding the requirements for declaring fixed income investments is crucial to avoid falling into the tax agency's scrutiny.
To be obligated to declare, individuals must meet certain income thresholds: taxable income exceeding R$ 33,888, tax-exempt or tax-at-source income above R$ 200,000, or gross income from rural activities surpassing R$ 169,440. This year, the focus is on ensuring that all fixed income investments are reported correctly, which include various instruments like savings accounts, Treasury Direct securities, and several types of credit bills.
According to the Brazilian Association of Financial and Capital Markets (Anbima), key fixed income assets include: Savings accounts, Treasury Direct (Tesouro Direto), LCI (Real Estate Credit Bill), LCA (Agribusiness Credit Bill), RDB (Bank Deposit Receipt), LC (Exchange Bill), Mortgage Bills (LH), CDB (Bank Deposit Certificate), CRI (Real Estate Receivables Certificate), CRA (Agribusiness Receivables Certificate), Financial Bill, Real Estate Bill (LI), Guaranteed Real Estate Bill (LIG), and Debentures.
When it comes to declaring these investments, the first step is to consult the Income Report provided by the financial institution or brokerage responsible for the custody of each title. This report will contain essential information needed for the declaration. "When you download your report, the balance you will see refers to the applied amount, without considering the income," explains Fernanda Melo, an investment specialist at Itaú and columnist for Inteligência Financeira.
Taxpayers should open the 'Assets and Rights' section of their tax return, select the type of financial application, and fill in the details according to the income report. It is essential to indicate whether the investment belongs to the taxpayer or a dependent. For each investment, the CNPJ of the financial institution, agency, account, and balances as of December 31, 2023, and December 31, 2024, must be provided.
Furthermore, income generated from fixed income investments must be reported in specific sections. Taxpayers need to declare income from incentivized debentures, CRI, CRA, LCI, LCA, and LIG, as well as savings accounts, in the 'Exempt and Non-Taxable Income' section. Meanwhile, income from other fixed income applications, such as CDBs, RDBs, and non-incentivized debentures, should be reported under 'Income Subject to Exclusive/Final Taxation.'
Interestingly, not all investments need to be declared. Taxpayers are exempt from reporting applications with a balance of less than R$ 140 as of December 31. This exemption offers some relief to those with smaller investments.
In addition to the tax implications of fixed income investments, the performance of these assets in the market is also noteworthy. On April 23, 2025, the rates for Treasury Direct securities declined compared to the previous session, resulting in nearly a 1% gain in market marking. This inverse relationship between yields and prices means that as rates decrease, the market value of these securities tends to increase.
As taxpayers navigate their financial obligations, they may also be considering the potential returns from large windfalls, such as those from popular reality shows. The recent conclusion of the BBB 25 reality show on April 22, 2025, saw the winner take home R$ 2.72 million, a decrease from the previous edition's R$ 2.9 million prize. Financial experts have analyzed how this amount could be invested to maximize returns.
If the winner were to invest the R$ 2.72 million in a savings account, they could expect a monthly income of approximately R$ 15,600. However, more lucrative options exist. For instance, a pre-fixed CDB yielding 13.35% annually could generate a monthly income of R$ 22,100. Investments in LCI/LCA with 90% of the CDI would yield around R$ 27,100 monthly, while a DI Fund at 100% of the CDI would provide about R$ 23,300 each month.
Moreover, a CDB offering 120% of the CDI could return roughly R$ 28,000 monthly. In the realm of Treasury Direct, a pre-fixed security maturing in 2027 would yield about R$ 19,100 per month, while a similar security maturing in 2031 would return over R$ 18,800 monthly.
These calculations highlight the importance of strategic investment decisions, especially for individuals who have recently come into significant sums of money. As the tax season progresses, understanding both the tax obligations and the potential for investment returns can empower taxpayers to make informed financial choices.
In conclusion, as Brazilians prepare their Income Tax returns for 2025, it is vital to accurately report all fixed income investments and understand the potential returns from various investment options. With the right information and guidance, taxpayers can navigate the complexities of the tax system while maximizing their financial opportunities.
