Employees with formal contracts have income tax deducted at source. But what about freelancers? The situation is different: income must be declared in different ways, depending on the payer.
"If you received income as an individual, you must pay the tax monthly using the "Carnê-Leão" system and then declare it in the "Taxable Income Received from Individuals/Foreign Sources" section. If you received it from a company, the company should have already withheld the tax at source. In that case, declare it in the "Taxable Income Received from Legal Entities" section," explains Professor Eduardo Linhares from the Federal University of Ceará.
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If the taxpayer has not paid the "Carnê-Leão" or has not had tax withheld at source, the amount due is calculated by the Federal Revenue Service's software.
>> Listen to the "Tax Q&A for 2026" on Radioagência Nacional:
Individual Micro-entrepreneurs
For individual micro-entrepreneurs, income of up to R$ 81,000 per year earned as a micro-entrepreneur is exempt from income tax.
And not all micro-entrepreneurs need to file an income tax return. What determines this is the "pró-labore" (salary). Only those who meet the criteria that require filing, such as having a "pró-labore" income greater than R$ 35,584 in 2025, are required to file.
>> See the step-by-step guide for micro-entrepreneurs:
Declaring your micro-entrepreneur company on…
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Employees with formal contracts have income tax withheld at the source. But what about freelancers? The situation is different: income must be declared in different ways, depending on the payer.
"If you received income as an individual, you must pay the tax monthly through the 'Carnê-Leão' and then declare it in the 'Rendimentos Tributáveis Recebidos de Pessoa Física/Exterior' section. If you received it from a company, the company should have already withheld the tax at the source. In that case, declare it in the 'Rendimentos Tributáveis Recebidos de Pessoa Jurídica' section," explains Professor Eduardo Linhares from the Federal University of Ceará.
If the taxpayer has not paid the 'Carnê-Leão' or if the tax has not been withheld at the source, the amount due is calculated by the Federal Revenue Service's software.
>> Listen to the "Tira-Dúvidas do IR 2026" segment on Radioagência Nacional:
Individual Micro-entrepreneurs
For individual micro-entrepreneurs, income of up to R$ 81,000 per year earned as a micro-entrepreneur is exempt from income tax.
And not all micro-entrepreneurs need to file an income tax return. What determines this is the so-called 'pró-labore' (owner's salary). Only those who meet the criteria that require filing, such as having a 'pró-labore' income greater than R$ 35,584 in 2025, need to file.
>> See the step-by-step guide for micro-entrepreneurs:
Declare the micro-enterprise in the 'Bens e Direitos' (Assets and Rights) section.
Declare the exempt profit in the 'Rendimentos Isentos e Não Tributáveis' (Exempt and Non-Taxable Income) section.
Declare the amounts received as 'pró-labore' in the 'Rendimentos Tributáveis Recebidos de Pessoa Jurídica' (Taxable Income Received from Legal Entities) section.
For those who are partners in a larger company with a CNPJ (company registration number), only the partner's 'pró-labore' should be included in the individual's tax return.
"It's as if they were an employee. It will be recorded as such, even though it's their own company. Because, even if it's a 'pró-labore,' it's money that needs to be documented and is registered on the invoices, along with the CNPJ, for example, of a limited liability company," explains Janaina Barboza, a professor at Faculdade Anhanguera.
In many cases related to income from freelancers, micro-entrepreneurs, and companies, it is recommended to consult an accountant to perform the calculations and file the return.