How does the year count work for young IRS?
Better understand how the new young IRS regime works and how the years of work are accounted for to obtain the benefit.
How does the new young IRS regime work?
According to the Finance Portal, the new Young IRS regime applies to income earned from the year 2025 onwards, providing for a partial exemption from taxation, with limits depending on the year of work.
The benefit is applied until 35 years of age, during the first 10 years of income, as long as the young person still meets the age criterion.
Exemption applies as follows:
• 100% of income in the 1st year of earning income;
75% of income in the 2nd, 3rd, and 4th year of income acquisition;
50% of income in the 5th, 6th, and 7th year of income generation;
25% of income in the 8th, 9th, and 10th year of income generation.
Read more: How does the new Young IRS regime work?
How is the counting of years of income obtained done?
According to a publication by the Government on the social network Instagram, the counting of the years of income earning begins in the first year in which the young person earns income from category A and/or B, not being considered dependent.
Only the years in which income is declared as non-dependent in the family IRS, are the ones that count to access the benefit.
In other words, even if you have earned income as a non-dependent, and then made, for example, a mixed year in which you earned income as a dependent, the previous time you did the IRS as a non-dependent is not considered.
Time begins counting from the year it became independent and has maintained the same quality up to this moment.
Find out more: What happens to Young IRS and public guarantee for buying a house with the fall of the Government?
Follow Savings in a Minute to keep up to date with current fiscal information.