Income Tax Private Pension Deduction BR

PGBL pension deduction on IRPF: up to 12% of gross annual income

What you put into a PGBL (Plano Gerador de Benefício Livre) can be deducted on the IRPF up to 12% of your gross annual taxable income. The catch is that this only works if you file the complete model (modelo completo) and contribute to INSS or RPPS. The formula is tax saved = min(contribution, 12% · gross income) · marginal rate. Say your gross income is R$ 120,000, you put R$ 18,000 into a PGBL, and you sit in the 27,5% bracket. The cap lands at R$ 14,400 (12%), so the tax saved is R$ 3,960. The R$ 3,600 above that cap simply doesn't get deducted, which is a good reason to look at VGBL instead.

A VGBL (Vida Gerador de Benefício Livre) gives you no IRPF deduction. The trade-off is that when the money comes out, tax hits only the yield and leaves the principal alone. That tends to suit people on the simplified model, those who don't pay INSS, or anyone who has already filled the 12% PGBL cap. FAPI (Fundo de Aposentadoria Programada Individual) runs under the same 12% deduction rule as PGBL. SUSEP supervises all three, and the products carry codes under ANBIMA's SIDA standard.

Applications

Use it to spread retirement contributions across the calendar year and hit the 12% cap, to split your money between PGBL and VGBL, to test the December top-up (aporte extra) that squeezes out the biggest refund, and to weigh today's tax shield against what you'll owe at withdrawal (progressive table versus the regressive table, which drops to 10% after 10 years).

FAQ

Does the 12% cap apply per source of income? No. It runs against the total of all taxable income on the DIRPF (salaries, pro-labore, rentals, carnê-leão).

Can I deduct PGBL if I'm MEI or autonomous without INSS? No. The rule asks that the taxpayer (or a dependent) also pay into a public pension regime, meaning INSS or RPPS.

Which tax regime is better on withdrawal? If you're saving for the long haul, the regressive table (35% → 10% after 10 years) usually wins. The progressive table fits better when you expect low income by the time you cash out. You pick this when you open the plan, and it's often a one-way door.