Brazil proposes separating retirement income and salaries for tax purposes

A new bill has been proposed in Brazil to separate retirement income from salaries for the purposes of Individual Income Tax (IRPF) calculations. Currently, individuals who receive both a pension and a salary have these amounts combined to determine their tax bracket.

The proposal aims to treat these two types of income separately. If passed through the legislative process, the measure would primarily affect retirees who continue to work and accumulate multiple sources of taxable income. Until the bill is approved and becomes law, current taxation rules remain in effect.