2023-10-15 12:08:40
Exchange Traded Funds (ETFs) are a form of investment that has gained popularity in recent years in Brazil. However, many investors still have doubts regarding the taxation of these funds. In this article, we will explore in detail how ETF taxation works, both in fixed income and variable income, and how to make the correct Income Tax declaration.
What is ETF taxation?
ETFs are traded on the stock exchange and function as investment funds that bring together different assets, allowing investors to acquire a diversified portfolio through a single asset. However, it is important to highlight that this convenience is also subject to taxation.
There are two types of taxation that must be considered when investing in ETFs: fixed income taxation and variable income taxation. Each of them has its own rules and rates, which will be covered in detail in the next topics.
Fixed Income Taxation
Fixed income taxation applies to ETFs that invest in public and private securities of this type of income, such as DI funds and private credit funds. An important feature of fixed income taxation is that income tax is withheld at source, that is, it is not necessary to pay DARF on the profit from the sale of these assets.
Tax is charged at the time of redemption of the investment, payment of income or sale of the asset on the secondary market. The income tax rate follows the regressive table, which varies from 25% to 15% according to the average maturity of the securities included in the fund.
It is important to highlight that the longer the term of the bonds that make up the ETF, the lower the income tax rate to be paid at the time of redemption, payment of income or sale of the asset. This regressive table was established by the government as a way to encourage investors to invest in long-term bonds, which generally offer higher returns, but with greater risk.
Variable Income Taxation
Variable income taxation applies to ETFs that invest in shares and other assets in this category. In this case, taxation occurs on the profit obtained from the sale of ETF shares, with a rate of 15% on capital gains.
Unlike fixed income taxation, variable income ETFs do not have an exemption of 20 thousand reais for sale in swing trade operations. Therefore, the investor needs to generate a DARF monthly for all months in which there are capital gains on the sale of these assets, considering the tax rate of 15%.
How to declare ETF in Income Tax?
Although taxes are paid through DARF, it is important to inform investments in ETFs in the Income Tax Declaration, following the new rules established for the year 2023.
Declaration of ETF Shares
To declare ETF shares in Income Tax, follow the following steps:
- Open the Federal Revenue program and select the “Assets and Rights” tab.
- Search for the code corresponding to the ETF you own and fill in the requested information, such as the number of shares and the acquisition value.
ETF Income Statement
If you have received income from ETFs, you must inform them in the “Income Subject to Exclusive/Definitive Taxation” form. Check if the broker issued the income statement and fill in the information correctly.
Statement of Profit and Loss from the sale of ETFs
To declare profits and losses obtained from the sale of ETFs, it is necessary to fill out the “Variable Income” form. Enter the sales data, such as the number of shares, the sales value and the purchase value.
Remember that it is essential to maintain documentation of all transactions carried out with ETFs, such as proof of purchase and sale, to prove the declared information if verification by the IRS is necessary.
What changed in the ETF declaration in 2023?
As of 2023, there have been changes to the rules for declaring variable income assets, including ETFs. Now, only investors who sold these assets in the previous year and fit certain criteria are required to declare them.
These criteria include having sold assets on stock exchanges or similar that totaled more than R$40 thousand in the year and having had a net gain subject to taxation. However, even if it is not mandatory, it is recommended to make the declaration to have a historical record of the operation.
Conclusion
Taxation for ETFs is an important issue that should be understood by investors. It is necessary to know the taxation rules for both fixed and variable income, in addition to knowing how to correctly declare ETFs in Income Tax.
Each type of ETF has its own particularities and specific rates, so it is essential to carry out a careful analysis and be aware of changes in declaration rules. Consulting an accountant or specialist in the field can be a good option to ensure that all obligations are properly fulfilled.
Remember to keep all records and documents related to transactions carried out with ETFs, as they will be necessary to prove the declared information. By being aware of ETF taxation and acting correctly, you will ensure compliance with legislation and avoid future problems with the IRS.
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