Normative Rule of the Federal Revenue of Brazil ("IN/RFB") no. 1.333, published on January 19, 2013, provides for the filing of the Annual Income Tax Adjustment Return ("DIRPF") referring to the fiscal year of 2013, calendar year of 2012, by individuals that are considered resident in Brazil.

Pursuant to IN/RFB no. 1,333/2013, the DIRPF is to be filed online (Receitanet) between March 1 and April 30, 2013, by 11:59:59 PM, or through removable media at offices of the Federal Revenue of Brazil, during business hours.

The following taxpayers, residents in Brazil, are subject to the filing of the DIRPF/2013, if in the calendar year of 2012 they:

i. received taxable gross earnings above R$ 24,556.65 (twenty-four thousand, five hundred and fifty-six reais and sixty-five centavos);

ii. received exempt earnings, non-taxable or taxed exclusively at source, above R$ 40,000.00 (forty thousand reais);

iii. earned in any month capital gains from the sale of assets or rights, subject to the charge of the tax, or carried out transactions in the stock, commodities, futures, or similar markets;

iv. with regard to rural activities:

a) received gross revenues above R$ 122,783.25 (one hundred and twentytwo thousand, seven hundred and eighty-three reais and twenty-five centavos) through rural activities;

b) intend to offset losses of previous years or of the year to which the statement refers;

v. had, on December 31, the possession or ownership of assets or rights, including bare land, whose total amount is superior to R$ 300,000.00 (three hundred thousand reais);

vi. became a resident in Brazil in any month and were under this condition on December 31; or

vii. opted for the exemption of the income tax on the capital gains earned from the sale of residential properties, whose proceeds are intended for the acquisition of residential properties in Brazil, within 180 (one hundred and eighty) days, as of the date of execution of the sale agreement.

Furthermore, it is worth noting that taxpayers are required to file the DIRPF using a digital certificate if in the calendar year of 2012 they:

i. received taxable earnings subject to the annual adjustment, whose sum exceeds R$ 10,000,000.00 (ten million reais);

ii. received exempt and non-taxable earnings, whose sum exceeds R$ 10,000,000.00 (ten million reais);

iii. received earnings taxed exclusively at source, whose sum exceeds R$ 10,000,000.00 (ten million reais); and

iv. made payments of earnings to legal entities, when they constitute deductions in the statement, or to individuals, when they constitute or not deductions in the statement, whose sum exceeds R$ 10,000,000.00 (ten million reais), in each case or in the total amount.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.