Some patients, due to the degree of involvement by the disease or the definitions of the medical team for better chances of success in the treatment, may have their work functions temporarily or permanently impaired, with incapacity for work and loss of income. Depending on the type of cancer and its stage, physical limitations may occur due to some paralysis – partial or total – or even the amputation of a limb.
To support situations like these, there are several benefits granted by the government to cancer patients. As the country’s tax system is fragmented, that is, there are federal, state and municipal taxes, in some cases there is no uniformity in the rules. An example is the municipal property tax, which is exempt for cancer patients in some cities. The Individual Income Tax, regulated by the Union, benefits all retirees diagnosed with cancer with exemption.
Income Tax Exemption
Workers retired by the private sector as public servants, provided with an application provided by the Federal Revenue Service, must seek the agency that pays their retirement (such as the INSS). There are no limits: all income is exempt. It is only necessary to prove the disease by means of a medical report issued by an official service of the Union, the states, the Federal District and the municipalities.
For the exemption request may be requested:
- Report issued by the official medical service of the Union, states, DF or municipalities, valid for 30 days. This report must contain: diagnosis of the disease and patient history, ICD (International Classification of Diseases), sequelae that may result from the disease, justification for the incapacity to work, date of onset of the disease (if it is not possible to indicate, the date of issuance of the report), signature, CRM and doctor’s stamp;
- Laboratory examination confirming the disease;
- Copy of the histopathological report (study at the microscopic level of organic lesions) or anatomopathological report (study of changes in the organism by the pathology); and
- Proof of income received.
Situations such as:
- Income from employment or self-employment activities received concomitantly with retirement or pension income; and
- Income of another nature, such as real estate rentals.
Cancer patients, even if they are not retired, can also request exemption from the IR. In this case, it is necessary to seek the Judiciary based on the principle of isonomy to request the benefit.
It is important to remember that the IR exemption does not exempt the taxpayer from his/her duties to present the annual IRPF Declaration.
The exemption is based on Federal Law No. 7,713/88, art. 6, items XIV and XXI
The IPTU (Imposto sobre Property Predial e Territorial Urbana) is a tax levied on the possession of all types of property located in urban areas. There is no national law guaranteeing the exemption; thus, each municipality has its legislation and may or may not give the benefit to people with serious diseases, such as cancer.
In most municipalities where there is now legislation guaranteeing IPTU exemption for patients with serious diseases, this right was conquered through the struggle of patients and NGOs, which pressured their legislators to create this benefit.
Inform yourself at the Finance Department of your municipality and check what is needed to file the application.
The Financial Operations Tax (IOF) is a federal tax, which is levied on foreign exchange, credit, insurance and also on securities, such as shares. The law determines that the IOF is exempt in financing for the purchase of vehicles adapted by people with physical limitations.
Cancer patients who also have some type of physical disability may benefit from the IOF exemption. The benefit is restricted to passenger vehicles, manufactured in Brazil and with a gross power limit of up to 127 HP. The sale of the vehicle acquired with the tax benefit can only occur after three years from its acquisition, under penalty of payment of tax, in addition to legal charges.
To obtain the IOF exemption, the patient undergoes a medical examination that will verify the need and ability of the interested party to drive the adapted vehicle to be acquired.
The exemption is guaranteed by Law 8.383/1991, art. 72, item IV, §§1 and 3. And, contrary to what happens with ICMS and IPI, the IOF exemption can only be requested once, according to the aforementioned law.
The Industrialized Products Tax (IPI) is a federal tax, which is levied on the manufacture of various products, such as automobiles. People with severe physical, visual and mental disabilities are entitled to the exemption – even before the age of 18, provided that the purchase is made by their legal representative. In the case of cancer patients, the right becomes possible when the disease results in any of the aforementioned deficiencies.
The interested party must submit an application for exemption from IPI to the delegate of the Federal Revenue Office (DRF) or to the delegate of the Federal Revenue Office for Tax Administration (Derat), with the following documents: copy of the applicant’s RG and CNH and/or of drivers and an evaluation report issued by a public health service provider or SUS partner.
The exemption is guaranteed by Law 14.287/2021.
The Motor Vehicle Ownership Tax (IPVA) is a state tax levied annually on those who own vehicles. As each state has its own legislation regulating it, the first step is to check in your state’s legislation what are the foreseen hypotheses to obtain your exemption. In some states, there is a law ensuring the tax benefit on the purchase of vehicles intended for the use of people with some type of disability, a condition in which the cancer patient may fall.
Anyone who benefits from this right and has collected the tax unduly can claim its refund retroactively to the last 5 years. In this case, you must prove that you already met the legal requirements to obtain the IPVA exemption when you made the payment.
Although the Tax on the Circulation of Goods and Services (ICMS) is a state responsibility, all entities of the federation must grant ICMS exemption on the purchase of a vehicle for the physically disabled. This has occurred since the signing of the ICMS Agreement 38/2012, signed between representatives of the states, the Federal District and the Ministry of Finance.
As with the other exemptions from taxes on the purchase of vehicles, it is necessary for the cancer patient to fit into some of the situations that limit their ability to drive non-adapted vehicles.
This benefit only applies to new motor vehicles whose sales price to the consumer suggested by the manufacturer, including applicable taxes, does not exceed R$ 70 thousand. The vehicle acquired by a person with a disability exempt from ICMS According to clause five of the ICMS 38/2012 agreement, the period for resale is 4 years, that is, if the vehicle is resold before that, ICMS must be paid ( unless the sale is to another person with a disability or if authorized by the state tax authorities).
This material belongs to the Oncoclínicas Group and is not intended to provide legal advice to any person or on any specific subject. In case of doubt, contact Grupo Oncoclínicas for clarification. It is forbidden to reproduce, use, disseminate or distribute, in whole or in part, this material without the prior consent of Grupo Oncoclínicas.