Investing in shares, options or other variable income assets on the Stock Exchange in 2021 is one of the situations that oblige you to deliver the 2022 Income Tax return. It doesn’t matter if you bought only R$ 1 or R$ 1 million in shares.
Be aware that the tax on gains obtained on the Stock Exchange must always be paid in the month following the sale of the shares. Do not leave it to make the adjustment only at the time of the declaration, because the fine and interest will be saltier.
See in this article how to declare the shares and how to calculate and pay any taxes on stock exchange gains.
You are the one who calculates and pays the tax
If you have no experience with the stock market, it is important to pay attention to the way in which gains obtained on the Stock Exchange are taxed. It is you who needs to calculate and pay the tax due.
It is a totally different process, for example, of an investment fund or in the Direct Treasury. In these investments, at the time of redemption, the tax is calculated and deducted by the bank or broker. You get your money already net of tax.
On the Exchange, profits from the sale of shares, options and futures contracts are subject to a 15% Income Tax rate for so-called “ordinary” transactions (when the purchase and sale of the asset take place on different days). The IR rate rises to 20% on gains in day-trade operations (when the asset is bought and sold on the same day).
Use a spreadsheet to track profits and tax
Setting up a spreadsheet with the shares traded is an almost indispensable tool for those who invest in the stock market. It serves to control all the buying and selling operations made and to find out if the trades made a profit or a loss.
The worksheet also facilitates filling out the annual income tax return. It records all the monthly results, taxes paid and the assets you had at the end of the year to include in the income tax return.
Without the spreadsheet, you will have to consult all the brokerage notes of the operations carried out throughout the year, which will require a lot of time and patience to organize the information when making the annual income tax return.
Tax must be paid in the month following the sale of shares
Tax on income from shares and other assets traded on the Stock Exchange must always be paid until the last business day of the month following the sale of the shares. For example, if you sold shares in March 2021, the IR should be collected by the end of April 2021.
The annual income tax return, which you need to submit by the end of May 2022, only serves to record that you have fulfilled this monthly obligation and compensate for small differences in the tax calculation.
The delay or non-payment of IR on gains from shares and other assets traded on the Stock Exchange is subject to a daily fine of 0.33%, up to a limit of 20% of the amount due, plus monthly interest, proportional to the Selic rate.
Therefore, do not leave the tax adjustment to be done only when submitting the annual return. In addition, failure to pay tax on stock gains can take your annual return to the twilight zone.
Sales of up to BRL 20,000 per month are exempt, but must be declared
There are some rules that help you pay less tax. The main one is the one that guarantees exemption from tax on sales of shares up to the amount of R$ 20 thousand in the same month.
It doesn’t matter if you made one $20,000 sale or 10 $2,000 sales. What matters is that the sum of all of them in the same month does not exceed this value.
The rule only applies to “ordinary” stock operations. Operations of the “day-trade” type always pay tax, regardless of the amount sold in the month.
In addition, the exemption is restricted to shares. Trading with ETFs, BDRs, options and futures contracts does not have this advantage.
Do not confuse the sale amount with the profit. The sale corresponds to the total traded, that is, the number of shares times the respective sale price, minus brokerage costs. It is different from profit, which represents the difference between total sold and total purchased.
For the exemption, what counts is the amount of the sale. Add up all sales operations in the month and check if the result was equal to or below R$ 20 thousand to be entitled to the exemption.
Write down the profits from these operations. The monthly sum of gains from exempt operations in the year must be informed in the “Exempt Income” form of the Income Tax.
Use the code “20 – Net gains on operations in the cash market of shares traded on stock exchanges in sales carried out up to R$ 20,000.00 each month, for the set of shares”.
Losses help reduce tax in the following months
Any losses recorded in one month can be deducted from the gains in the following months, which helps to reduce the tax calculation basis.
Compensations from one month to another can only be made for the same type of transaction, “common” or “day-trade”, as the tax rates are different.
Likewise, you can only offset stock loss with stock profit, options loss with options profit, and so on.
But don’t forget that all this math needs to be done by you, in a well-organized spreadsheet.
See how to pay tax
To pay tax on gains made on the Stock Exchange, you must complete the Federal Collection Document (Darf). You can fill in the Darf in the bank’s own application (internet banking) where you have an account.
Look for the option of “payment without barcode” or “payment of taxes”. Then select “Darf” and fill in the fields as explained below.
Enter your “CPF”. In the “calculation period” field, enter the last day of the month in which the shares were sold. For example, if sold during the month of March of this year, enter 03/31/2022. In the “due date” field, enter the last business day of the following month. In the example given it would be 29/04/2022. Choose a “payment date” by the due date.
In the “Revenue Code” field, enter the number “6015”. This is the code for paying tax on gains from stock exchange operations. It is valid for all traded assets, such as stocks, options and futures contracts, and for all types of operations, common or “day-trade”.
Leave the “Reference Number” field blank. Enter the amount of tax payable in the “Principal Amount” field and repeat the number in the “Total Amount” field. If Darf is not in arrears, leave the “Fine” and “Interest” fields blank.
Even if you have traded several assets, such as stocks and options, or made “ordinary” and “day-trades” operations in the same month, just pay a single Darf per month, using the code 6015.
Calculate the tax separately, considering a rate of 15% for “ordinary” operations and 20% for “day-trade” gains. In the end, add the tax of the two types of operations and put the total result in Darf.
Forgot to pay? Need to issue new Darf with fine and interest
If you forgot to collect the tax in any month or paid less than you should, you must issue a new Darf, adding the charges.
To calculate the fine and interest, you will have to use a program from the Revenue called Sicalcweb.
Sicalcweb will generate the new Darf, with the addition of charges, so that you can pay the tax correctly. Repeat the procedure for all months with Darfs in arrears, if applicable.
See in this other article how to use Sicalcweb to generate a new Darf with fine and interest.
Investments in the stock exchange enter a specific form
When filling out the IR 2022 statement, you must inform the investments made on the Stock Exchange in the “Variable Income” form. Trades with stocks, options, futures contracts, forwards and others enter the “Common Operations/Day-Trade” tab.
When you open the sheet, you will see, on the left side, that there is a tab for each month of the year. The sheet is divided into two columns, one for “common trades” and one for “day-trade”. Each row on the card corresponds to an asset type.
Now you will understand why it is so important to have an organized spreadsheet with all the operations carried out in the year. Open your spreadsheet and transport the values, month by month, of the total profit or loss for each type of asset and for each type of operation.
When reporting losses, be careful to put the negative sign (-) in front of the number. In the fields that you did not carry out an operation in the month, put the value zero.
If the sum of stock sales in a given month was equal to or less than BRL 20,000, enter the value zero in the profit field for that month. Tax-exempt profits must not be reported on this form. Follow the guidelines in the section “Sales of up to BRL 20,000 are exempt” in this article.
If any of your dependents invested in the Stock Exchange, the information must also be placed on this declaration form.
Select the “Dependents” tab at the top of the form, inform the dependent and repeat the entire process described above. Take care to make a worksheet for the dependent’s actions separate from yours, so as not to mix up the values.
See how to declare dividends and interest on capital
If you received interest on capital, dividends or any other type of remuneration from the shares you invested in 2021, it is necessary to declare these earnings in specific forms of the declaration.
This other article explains how to declare dividends and interest on capital, step by step.
See the changes to report actions in the assets and rights sheet
The last step in completing the IR 2022 declaration for those who invested in the Stock Exchange is to inform the shares, options and other assets in the “Assets and rights” form.
An important detail: you only need to inform here the assets you had on 12/31/2021. If you bought and sold shares in a particular company during the year, but you no longer had the shares on that date, you don’t need to put it on the declaration of assets.
Be aware that, starting with this year’s declaration, the Federal Revenue created new specific “groups” and “codes” to declare shares and other assets traded on the Stock Exchange.
Shares must be declared in the group “03-Participações societárias”, with the code “01-Shares (including those listed on the stock exchange)”.
Options, BDRs, ETFs, futures contracts and other assets traded on the stock exchange, with the exception of shares and gold, must enter the group “04-Applications and investments”, with the code “04 – Assets traded on the stock exchange in Brazil ( BDRs, options and others – except stocks and funds)”.
Those who invest in gold must choose the group “04-Applications and investments” and the code “05 – Gold, financial asset”.
Open the “Assets and rights” tab and click on “New”. Select the group and code according to the investment type as explained above.
State whether the asset was purchased by you or your dependent. Enter the “CNPJ” of the company issuing the share, option or other traded asset.
In the “Discrimination” field, enter the amount purchased, the date and through which broker you traded the shares or other asset.
If you already had the shares in the previous year and there was any movement in 2021, such as an increase or decrease in the number of shares, please put the explanation in this space.
In the “Status on 12/31/2020” field, enter a value of zero if you did not have the shares in 2020. If you already did, then inform this field how much you paid for them, including brokerage.
In the “Status on 12/31/2021” field, enter the amount paid for the shares purchased in 2021 or enter zero if you previously had shares, but sold them all last year.
If you already had the shares in 2020 and continued with the same shares in 2021, repeat the value in both fields.
If you had and bought more, add the purchase amount in 2021. If you sold a part, enter the value of the remaining shares in the “Status on 12/31/2021” field.
An important detail: never update the value of the shares by the market price. What counts for the income tax return is how much you paid, that is, the purchase price of the shares times the amount plus brokerage costs.
Repeat the entire process above for each company that you had stocks, options or other assets at the end of 2021.
Keep receipts for five years
Keep all paperwork (brokerage notes, guides, proof of payment) for at least five years.
During this period, the Federal Revenue can take your statement to the fine mesh and question any possible divergence in values.