Income Tax Exemption for People with Serious Illnesses: A Legal Analysis

The exemption from Personal Income Tax (IRPF) for individuals with serious illnesses is a relevant measure in the Brazilian legal and tax context. Established by Law No. 7,713 of December 22, 1988, this exemption aims to alleviate the financial impact on taxpayers facing severe and debilitating health conditions. This article examines the legal criteria for the exemption, the application process, and the legal implications involved, offering a detailed analysis of how Brazilian law addresses this issue.

Criteria for Exemption

Law No. 7,713/88 establishes that the IRPF exemption applies to income from retirement, pension or retirement benefits for military personnel, as well as the 13th salary for those with serious illnesses. The health conditions that guarantee exemption are precisely defined and include, among others:

• AIDS (Acquired Immune Deficiency Syndrome)

• Severe Heart Disease

• Malignant Neoplasm

• Parkinson's disease

• Multiple Sclerosis

• Severe liver disease

• Severe Nephropathy

• Blindness (including monocular)

• Irreversible and Disabling Paralysis

It is crucial that the illness is duly proven by a medical report so that the taxpayer can benefit from the exemption. The list of illnesses is not exhaustive, and other serious conditions may be considered, as long as they are proven through an official medical evaluation.

Application Procedures

The process for obtaining the exemption requires the presentation of appropriate medical documentation. The taxpayer must obtain an official medical report attesting to the presence of the serious illness. This report must be issued by a medical service of the Union, States, Federal District or Municipalities, with the date of onset of the illness clearly identified. If the exact date cannot be established, the date of issuance of the report will be considered.

Once the report has been obtained, the next step is to present it to the agency responsible for paying the benefit, such as the National Institute of Social Security (INSS). Acceptance of the report by the competent agency will result in the suspension of withholding tax on retirement income, pension or retirement benefits. It should be noted that the exemption does not apply to income from other sources, such as salaries or rent.

Legal Implications and Additional Benefits

The exemption from income tax for serious illnesses not only reduces the tax burden, but can also provide additional benefits to the taxpayer. One relevant aspect is the possibility of refunding amounts unduly paid in the last five years, through legal action. This refund can be requested if the taxpayer has paid tax on income that should have been exempt, but for this, a legal process is required to prove the right to the exemption.

Furthermore, the legislation allows the presentation of medical reports issued by private institutions, which can facilitate access to the benefit, especially for those who do not have immediate access to public medical services.

Income tax exemption for people with serious illnesses is a fundamental measure that aims to ensure greater dignity and financial support for individuals facing significant health challenges. Although this is an important protection, the administrative process to obtain the exemption can be complex and often requires judicial intervention to ensure that taxpayers’ rights are fully respected. Therefore, it is essential that people with serious illnesses are well informed about their rights and the necessary procedure to secure the exemption, in order to minimize the financial impact of their health conditions.

This article is for informational purposes only and is not a substitute for a consultation with a professional. If you still have questions or need more detailed guidance, please contact us by clicking here. Our team is ready to understand your situation and help.