Full or simplified tax return: which one lets you donate in Brazil?

This is how taxpayers in Brazil decide between the two income tax return models; readers abroad do not pay tax in Brazil, but the rule explains how donations to sport work there. Only the full return lets you deduct donations to sport, to the FIA (municipal children’s fund) or to the Fundo do Idoso (elderly fund). On the simplified return, Law No. 9,250/1995, art. 10, applies a single 20% discount that “will replace all deductions allowed by law”, and the donation reduces nothing. This article shows how to choose the right model and do the math before donating.

What the law says

Art. 10 of Law No. 9,250/1995 creates the so-called simplified discount: instead of reporting each expense, the taxpayer swaps everything for a discount of 20% of taxable income. As worded by Law No. 15,270/2025, this discount is capped at R$ 16,754.34 up to calendar year 2025 and at R$ 17,640.00 from calendar year 2026.

The same article says this discount replaces all deductions. That includes the deduction for incentivized donations: FIA, Fundo do Idoso, Lei Rouanet (the culture incentive law), audiovisual, PRONON and PRONAS (federal health programs for cancer care and for people with disabilities) and the Sports Incentive Law.

The ECA (Brazil’s Child and Adolescent Statute) repeats the rule for donations made within the tax return: art. 260-A, § 1, I, says it does not apply to those who use the simplified discount.

Why the donation only works on the full return

An incentivized donation is a deduction from the tax due: you calculate the tax and subtract the donation, up to the legal limit. That subtraction only exists on the full return, because that is where the Receita Federal’s program calculates the deductions one by one.

On the simplified return, the program applies the 20% and stops. Even if you report the donation, it does not change the result.

The math to decide

Add up your legal deductions for the year: dependents, medical expenses, education (with a cap), official and private pension (PGBL, a private pension plan). Compare the total with R$ 17,640.00.

Example 1. A person with taxable income of R$ 120,000 and deductions of R$ 25,000.

• Simplified: 20% of R$ 120,000 = R$ 24,000, but the cap is R$ 17,640. Discount of R$ 17,640.
• Full: R$ 25,000 in deductions, plus the donation to sport.
• Result: the full return already wins without the donation; with the donation, it wins by more.

Example 2. A person with income of R$ 60,000 and deductions of R$ 4,000.

• Simplified: 20% of R$ 60,000 = R$ 12,000.
• Full: R$ 4,000.
• Result: the simplified return wins comfortably. A donation of 7% of the tax due does not cover the difference. In this case, donate if you want to help, but do not count on the deduction.

Example 3. A person with income of R$ 100,000 and deductions of R$ 17,000.

• Simplified: R$ 17,640.
• Full: R$ 17,000, a R$ 640 difference in the base, worth less than R$ 200 in tax.
• Result: almost a tie. A R$ 700 donation to sport (7% of R$ 10,000 in tax due) tips the balance toward the full return.

The rule of thumb: an incentivized donation only decides the choice when the two models are close. When the simplified return wins by a lot, the donation does not make up the difference.

Step by step in the Receita Federal program

1. Fill in the whole return with income, deductions and donations.
2. In the “Doações efetuadas” (Donations made) section, enter the incentive code, the CNPJ (taxpayer ID) of the fund or project, and the amount.
3. If you are donating to the FIA or the Fundo do Idoso within the return, use the “Doações diretamente na declaração” (Donations directly on the return) section (ECA, art. 260-A).
4. Look at the summary: the program shows the tax under both models side by side.
5. Choose the full return if the tax is lower or the refund is higher.
6. Generate the DARF (federal tax payment slip) for the donation made on the return, if any, and pay it by the due date of the first installment.

See the details of the 3% on the return in donating directly on the tax return.

Common mistakes

• Donating during the year and, at filing time, accepting the simplified return because it “looks easier”.
• Using the old cap of R$ 16,754.34 instead of R$ 17,640.00 for 2026.
• Thinking the donation is a deduction from the tax base. It is a deduction from the tax, with a percentage cap.
• Forgetting the receipt. See incentivized donation receipt.
• Donating more than the 7% limit expecting to deduct it all. The excess does not come back.

What about Muaythai in Balneário Camboriú?

It is worth repeating: the Projeto Campeões do Futuro (“Future Champions”), Mestre Paulo Ribeiro’s free project for children after school hours, and FECAMTT, the Santa Catarina Traditional Muaythai Federation, do not receive Imposto de Renda (income tax). The Muaythai nas Escolas (“Muaythai in Schools”) project is under PIE/SC (Santa Catarina’s Sports Incentive Program), which works with ICMS (the state tax on goods and services) from Santa Catarina companies: see Muaythai nas Escolas.

If you use the full return and have tax due, the legal options are the Balneário Camboriú FIA and projects approved under the Sports Incentive Law. If you use the simplified return, you can help in other ways: see Support.

What to do today

1. Take last year’s return and check which model you used.
2. Add up this year’s deductions and compare them with R$ 17,640.
3. If the full return wins or ties, calculate 7% of the tax due and choose where to donate.
4. Keep the receipts and report everything in the right section.

This is how taxpayers in Brazil do it. If you live abroad, you do not pay tax in Brazil, but you can still support the project: want to know what Campeões do Futuro needs beyond tax money? Talk to the Mestre.

This content is for information only and does not replace advice from your accountant. Rules may change: always check the wording currently in force.