On Monday, the Federal Revenue of Brazil unveiled the regulations for the Income Tax of 2026, which is based on the fiscal year of 2025. The window for submitting tax declarations will run from March 23 to May 29, and taxpayers can download the necessary software starting from March 20. This year marks a shift from previous practices as refunds will be disbursed in four separate installments, with approximately 80% of the payments anticipated to occur in the first two batches, concluding by the end of June.

The refund schedule is structured around specific deadlines: the first installment is set for May 29, the second for June 30, the third for July 31, and the final one on August 28. The Federal Revenue prioritizes the order in which tax declarations are submitted, following a priority queue that distinguishes certain groups who will receive their refunds sooner, even if they submit their tax documents toward the end of the filing period. Taxpayers who submit their declarations early will be rewarded with earlier refunds, whereas any errors or omissions in the submission can result in losing their place in the refund queue.

This approach not only aims to streamline the refund process but also incentivizes timely and accurate declarations among taxpayers. The announcement emphasizes the importance of understanding the new rules and staying attentive to submission deadlines in order to maximize financial benefits associated with tax refunds. As taxpayers prepare for the upcoming filing season, clarity on the expectations and structure of refunds will be crucial for proper financial planning in Brazil for the year 2026.