Find out which diseases qualify for income tax exemption

The legislation provides for a number of illnesses that qualify an individual for income tax exemption. However, many adverse situations are not known to the population.

Gilder Daniel Torres, professor of the Accounting Sciences course at the Faculdade Anhanguera, points out that the diseases that officially grant this exemption include:

• AIDS

• Mental alienation

• Severe heart disease

• Blindness (also monocular)

• Radiation contamination

• Paget’s disease in advanced stages (Osteitis Deformans)

• Parkinson’s disease

• Multiple sclerosis

• Ankylosing spondyloarthrosis

• Cystic fibrosis (mucoviscidosis)

• Leprosy

• Severe nephropathy

• Severe liver disease

• Malignant neoplasms

• Irreversible and disabling paralysis

• Active tuberculosis

It is essential to understand that the recognition of social security rights by bodies such as the INSS and the courts may differ. Additionally, the income tax exemption for those with a serious illness applies only to income from pensions, pensions or earnings of military personnel in the reserves.

“It is critical to understand the nature of these benefit-eligible sums, highlighting that the proceeds may come from sources other than public pensions,” explains Gilder.

Other income

Pension income resulting from an agreement or court decision, a public act and also temporary food received by people suffering from serious illnesses are also considered exempt.

“Retirement or pension benefits resulting from an accident at work are also exempt, as are those received by people suffering from occupational diseases,” it says.

However, there are situations where the tax exemption does not apply. Attempting to appeal in these circumstances could be a waste of time and financial resources. For example, income from employment and self-employment before retirement is not exempt, even for those with a serious illness.

“With regards to financial redemptions by supplementary pension institutions, Fapi or PGBL, the exemption is valid only for the amounts that represent a pension supplement. Otherwise, even if the beneficiary has a serious illness, the income tax,” explains Gilder.

Required documentation

To request exemption from Income Tax it is necessary to collect all the documentation relating to the diagnosis and confirmation of the serious illness.

“The right to exemption will be granted on the basis of an expert opinion, so it is essential to present as much information and evidence as possible. If possible, the report should be issued by the medical commission of the paying source, facilitating the cancellation of the withholding tax. Otherwise it is necessary to contact the social security institution to which the individual is linked and formalize the opening of the procedure, requesting exemption. A medical examination will then be scheduled to demonstrate the existence of the disease and evaluate the date on which it was contracted, or, in the absence of this information, the date on which the report was issued will be taken into consideration”, concludes the professor. .