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A complete guide for those who need to understand the Declaration of Final Departure from the Country and know what steps to take
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[See the full article at: Declaration of Final Departure in 2023: what it is and why you should do it]
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Very good article. Congratulations and thank you for sharing this knowledge. What do you recommend for someone like me who has been living abroad since 1992? I think the law is from 2002 and I have no idea how to regularize my situation. I still have a bank account in Brazil with very little money, for when I go on vacation. But I'd prefer not to have any fiscal ties.
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Very good text.
I was confused by that part:
"This doesn't necessarily mean that the same tax has to be paid twice, once in each country. Income tax due abroad can be offset against tax due in Brazil in some circumstances, up to the limit of the amount of Brazilian tax. This will depend on the existence of an agreement between the two jurisdictions or recognition of reciprocity of treatment (i.e. that even without an agreement, one country would allow the tax paid in the other country to be offset). For example, the tax paid abroad on the capital gain on the sale of a house could be credited against the tax due in Brazil for that sale within the same calendar year."My case:
I currently live in Canada, but I have real estate and investments in Brazil, which means I have income in both countries.
I still don't have the document for permanent residence in Canada. My understanding is that I'm going to make the declaration in BR and here in Canada too, it's what I put in each that's confusing. I intend to make the declaration of permanent departure... -
Hi Vinicius, congratulations, excellent material. So, I understood from your text that even though I live abroad and receive from a paying source here in the UK (my case) I am not incurring in any irregularity with the revenue by not declaring the definitive exit, and all I would need to do is declare the income received abroad, is that right?
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Hello good afternoon, my husband and I left Brazil in April 2019, I'm filling out my declaration of definitive exit and I had doubts in two situations. First: In the "Exit" field, it asks me for information about an attorney-in-fact, I don't have one, am I obliged to have an attorney-in-fact when I leave the country? Second: In the "Income It asks me to inform the date of the *communication of non-resident status to the paying source*. It so happens that my termination with the company was in January and I left the country in April, so I didn't make any communication, what date should I put in this field?
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Good morning Vinícius, I read your article, congratulations! My wife and I are moving to Quebec (Canada) in February 2019, we made the definitive exit communication as a temporary exit. For this case, I would like to confirm if we will be tax residents only in Canada and if in the declaration of Brazil will not be taxed with the gains abroad when making the Brazilian income tax return.
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Hello, Johnson!
To answer your question, the ID or RNE also continue to exist as before. No one loses their identity because of permanent departure. In the case of the ID card, the immigration rules apply. I hope to write a post in the future clarifying the situation of the expatriate foreigner who comes to Brazil to take up a position in a Brazilian company for a certain period. If you have any further questions, we're happy to help, or you can get in touch via email or WhatsApp to find out more about our work.
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Hello, Marlise!
Thank you for your interest in our content. CVM Resolution 64/2022 completed a change that began in October 2020 with CMN Resolution 4,852/2020. Basically, it should lower the cost a little more for the 4373 investor, the large investor who enjoys tax incentives to invest in Brazil. For smaller investors, the situation remains the same.
The biggest change is expected to take effect from 2023, when Law 14.286, which was passed on December 29, 2021, comes into force. We are still waiting for the Central Bank's regulations to find out what this future impact will be like. It promises to be positive.
If you need more support from us, just get in touch with the team via WhatsApp or email!
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Vinicius Tersi,
Thank you very much, this is a very valuable article.
I have lived in the United States for 34 years, and I am an American citizen. I have no income or assets in Brazil. I haven't filed an exit declaration. I want to buy a property in Brazil and return in the near future.
How does the tax work in my case? How much do I have to pay?
Thank you very much. -
Hello, Maria!
Thank you for your interest in our content. As a non-resident, you shouldn't have any difficulties buying a property in Brazil, as you only need a CPF to purchase it. The taxes relating to the purchase of the property are the ITBI (municipal tax, usually 2%-3% of the property's value, depending on the municipality) and after that the IPTU, once a year. Income tax is only charged on the sale of the property. The final step is to formalize that the source of the funds you are using to buy the property comes from an asset you built up abroad as a non-resident, and which has therefore not been subject to income tax over the years and to filing returns.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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An INSS pensioner went to Portugal in 2019. She didn't take the CSDP because she doesn't intend to leave Brazil permanently. She has a fixed residence in Brazil and has been filing income tax returns in Brazil and Portugal ever since. The intention was to return to Brazil every year before completing 365 days, but at the end of 2019 the covid came and since then she has not returned to Brazil. Would she face any penalties or is she covered by the pandemic?
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Hello, Lamb!
Thank you for your interest in our content.
The pandemic situation has brought different responses in each country. The OECD expressly recommended that countries stop counting days of stay in the country towards tax residency whenever this was due to travel difficulties created by the pandemic. The US suspended it for 120 days in 2020 because of this, but the IRS has not spoken out on the matter, either for or against the taxpayer.
It's difficult to offer a recommendation in a blog post. However, I believe that it is possible to justify maintaining the definitive intention (the criterion for acquiring and maintaining tax residency in Brazil) even if a person has been absent from Brazil for more than 12 months, as long as they fulfill all the obligations of a tax resident in Brazil correctly. I argue that the 12 months is a legal presumption, which admits proof to the contrary, which can be done by submitting declarations as a resident. The situation created by the pandemic is another possible proof, depending on the context in which it occurred.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Good afternoon; The declaration of definitive departure from the country can be made in the complete or simplified model, obtaining the discount of 20%? if the non-resident does not have a bank account in Brazil, how does it look if he has a refund from the IRS, and does not have an attorney? thank you in advance for the information that may be provided.
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Hello, José!
Thank you for your interest in our content. The Declaration of Final Departure from the Country only has legal deductions. There is no simplified deduction, and the adjustment payment must be paid in a single installment.
As far as we know, the IRS has no specific rules on income tax refunds. In principle, they will deposit it in the account you indicate in the DSDP, even if it's a normal bank account. Bank account restrictions come from the Central Bank, hence this context.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Congratulations on the text.
In my case, I left Brazil in 2019 and didn't make any definitive exit declarations, but I've been making the IRPF declaration normally (I had an apartment that was only sold in 2021).
My question is: if I rectify my declaration for 2019, what will happen to the declaration already submitted for 2020? Do I need to rectify it too? Would it be easier just to rectify the 2020 one?
If I rectify 2019 and/or 2020, I will be exempt from submitting the 2021 declaration, right?
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Hello, Antonio!
Thank you for your interest in our content. You can rectify returns from previous years, even to replace a "normal" return with a final exit return. And after that, you would no longer need to file income tax returns (as you do now, for 2021).
It has been our practice to rectify the two years, to make it clearer that you left in 2019 and have continued as a non-resident since then, with some comments in the body of the declaration explaining the procedure, so that it can be read in the event of an inspection. Otherwise, it could be understood that you left in 2019 and returned in 2020, which is not true.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Congratulations on the article! The most complete content I've found so far. I'm retired and I'm going to move to the US and work there, but I'll continue to file a tax return in Brazil due to my retirement. Do I need to file a Final Exit Declaration and then file an income tax return with the income from the date of departure? Does the taxation change to 25% only in the deduction at source or also at the time of adjustment in the income tax return, I say this because my parents are my dependents and I would continue to declare them in my tax. Thank you!
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Hello, Ivaneide!
Thank you for contacting me. If you have already filed your final exit declaration, there are no other declarations to file in Brazil, even if you keep assets here, such as real estate.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Elvis!
Thank you for your interest in our content. The taxation of 25% of IRRF on retirement is not entitled to discounts or deductions. In this case, you would actually be subject to this tax as a non-resident, even if your parents in Brazil are your dependents.
It's worth mentioning that if you have dual tax residency, you also have to declare your US income, which can offset the federal income tax you pay in the US (but not the state or municipal income tax, which is levied depending on where you live). Just as an example, Florida and Texas have no state income tax, and New York has both state and municipal income tax.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Elvis,
there are lawsuits in the courts about the 25% of IRRF, and the STF has recognized the general repercussion of the discussion. This means that when the STF rules (which could take years), the decision will apply to everyone. But the discussion before the STF is about the progressive table, not legal deductions.
It is possible to take legal action.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Congratulations on the content of the article! My question... I made the statement and declaration of departure in 2017, I returned in August/2021, the IRPF of 2022 I do normally with my assets / expenses and deliver or do I need to do something else informing the date of departure and return to Brazil?
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Hello, Cintia!
Thank you for your interest in our content. You should submit your tax return as normal, but informing as your initial position, in assets and rights, not what you had on December 31, 2020, but what you had in August/2021, when you returned to Brazil. There are a few more small guidelines from the tax office about this situation. Only foreign income received after your return is taxable in Brazil.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Ivan!
Thank you for your interest in our content. The right thing to do is to send your debtor a letter informing them that you have become a non-resident. The interest is subject to 15% of IRRF, collected by him in a DARF form under code 0481 ("Interest and Commissions in General paid to Residents Abroad").
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Excellent article!!!
Vinicius, if you don't mind me asking: I made my final exit notification with the exit date of August 30, 2021 (1 year since I left indefinitely), and now I'm filling out my Exit Declaration. I have already transferred almost all of my assets in Brazil to Germany, but I still have funds in my account and in investments. I didn't know about the communication to the sources of payment / bank. I had intended to zero out my accounts and close them in the next few weeks, but with this situation in Europe involving Russia and Ukraine, I thought it would be prudent to keep a reserve in Brazil, in case the situation suddenly worsens, and who knows if access to our money will be restricted in Germany, so I still kept the resources I mentioned.
What risks am I taking? Are they "calculated risks" that would be worth it? Or not at all?
What would you recommend? -
Good morning, great article; I have a question if you can help me thank you, I have been away since July/21, I will make our temporary departure in July/22, I sold my house now in 02/22 I am deciding if I return to Brazil before 1 year or if I pay the tax on capital gain that was 220.00,00 or can I buy another property with the total value of the sale and benefit from the law to not pay tax?
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This post is undoubtedly one of the best I've ever read on the subject. Congratulations. I would like to clarify two issues:
1) What status should a non-resident CPF appear on the Receita website? "NAO RESIDENTE" or something similar?
2) When I made my "exit declaration", my accountant sent me a DAA. I learned here that it should have been a DSDB, right, so how can I be sure that my exit really happened? -
Hello. I'm leaving Brazil and I want to make an exit declaration. I have a question about. A closed pension plan that my former company contributed to for its employees. When I contacted the administrator of the plan, they told me that I can't port it abroad and I can't request a redemption because it's a closed plan. I need advice on this as I no longer intend to return to the country and what happens to this money?
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Hello, Evanir!
Thank you for your interest. In principle, yes, you should have submitted the 2017/2016 DSDP, but this is no longer possible. More than five years have passed. You could submit the DSDP for the following year to regularize your CPF status.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Candy!
Thank you for your message. Today, the risk for those who keep financial investments in Brazil after withdrawing is not so much to do with the tax difference (there isn't one), but with the cross-checking of information between the banks and the IRS. In most cases, the amounts involved aren't high enough to cause difficulties, and even when they are, we've had the experience of being able to explain to the IRS and resolve the problem.
We are working to ensure that even these difficulties cease to exist. I had a meeting today with the Central Bank with this very objective. But the most optimistic expectation in this regard is for 2023.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Luiz!
Thank you for your interest. If you sold the property while you were still a tax resident in Brazil (because of the temporary exit rule), then you shouldn't have any problems taking advantage of the 180-day tax break. This is because the taxable event occurs on the sale of the first property, and not on the acquisition of the second. So I don't see any difficulties, even if the purchase is completed within the 180 days, but after July/2022.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Italo!
Thank you for the compliment. About your questions:
1) The CPF registration certificate does not show whether you are a resident or non-resident. Two weeks ago, I proposed that the Ministry of Economy and the Revenue Service allow the creation of a certificate for this very purpose. What you get today is "REGULAR", "PENDING REGULARIZATION", "SUSPENDED" or "DROPPED", plus one or two other hypotheses. If you've done everything correctly and there are no cross-referencing problems, you'll be "REGULAR".
2) Your definitive withdrawal happened when you have a receipt for a DSDP, and this is the last declaration sent (i.e. it wasn't rectified afterwards). Other than that, you can only get assistance from the Revenue in person, unfortunately. That's why I suggested creating a certificate for this purpose.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Fabio!
Thank you for your interest. You don't lose the amount deposited in the closed pension fund. It remains invested for you. When the time comes for you to redeem the amount in accordance with the fund's rules (age, investment time, etc.), it is recommended that you inform the fund of your non-resident status first, so that they can withhold income tax correctly and avoid any difficulties with the IRS. If at that time you become a tax resident in Brazil again, then the situation will continue as normal, with no need to communicate anything. Tax is only due at the time of redemption.
There are countries, such as Switzerland, that allow early redemption for those who leave the country, but Brazil, as far as I know, is not one of these countries.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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I have been a non-resident for many years and made investments in funds and purchases/sales on the stock exchange in 2021.
I'm not going to return to Brazil in the short term, but I'd like to know if I can continue as a non-resident with these investments, if I should get rid of these investments or if I can declare income tax again this year and become a resident in Brazil? Thank you. -
Congratulations Dr. Vinicius. Excellent content, very enlightening.
If you can, I'd like some help.
I have a friend who has been offered a job living in Panama. It turns out that in this country, there is a tax benefit for those who have their tax domicile only there. The question that arises is:
He is married and has a mortgage in Brazil in his wife's name. If he continues to pay this mortgage, could he lose his benefit? even if only he does the DSDP and his wife does not.
I know that this may be a condition specific to Panama, and perhaps that's why I haven't found the answers.thanks, and congratulations again!
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Good morning,
One question, for those who are going to report DSDP2022 - and who have investments in Brazil.
Are we obliged to submit the DIRPF in 2023 and subsequent years or will the tax be deducted by the source of payment 100%?
1- Real estate funds (FII) with monthly income that is currently exempt for residents.
2- LCA/LCI
3- Treasury bonds
4- Investment Funds
5- Variable Income (Buy / Sell / JCP / Dividends) -
Hello! Great text! Congratulations!
I sold a property in 2021 and I didn't enter any information, for example in the GCAP, which is where I was told I had to enter this sale, but I'm not a resident either, so I didn't file the IRPF declaration anymore and now I don't know what I should do, I've already filled in the GCAP and the DARF generated is for the day of the sale. What should I do?Thank you!
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Excellent post, thanks for sharing so much knowledge!
I have some doubts about having a company in Brazil and living abroad.
My family and I are moving to Portugal soon. I will be working for a Portuguese company and will be paid directly there, but my wife has a company in Brazil and works as a service provider. What about her? Does she have to submit any kind of statement or declaration? Change the company's regime? How long can she continue in this situation?Thank you in advance for your clarifications.
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First of all, I'd like to congratulate you on the excellent material!
It deals very thoroughly and clearly with the various implications of whether or not to submit the exit declaration to the Brazilian tax authorities... Nevertheless, I would appreciate your advice for my particular situation.My wife and I are pensioners. I receive retirement benefits from the INSS and the VW private pension fund. My wife receives only from the INSS. We both have different types of investments, both at Banco Itau and XP Corretora.
I have dual citizenship (I have a Spanish passport) and in recent months my wife has been expressing her desire to obtain Spanish nationality too. I checked with the consulate and one of the basic conditions for this to happen is that she can prove that she has lived in Spain for at least a year.
In order to make this possible, we have decided to rent out our apartment here in Brazil and use the money we receive to pay for an apartment in Spain. Our departure date from Brazil has already been set (07.04.2022). Once the necessary period has elapsed and the process of granting nationality has been completed, we will return to Brazil, which means that, at first, we have no intention of moving to Spain permanently. It would only be for the period necessary to complete the process described above.
In view of the above, I would like your recommendation:
1) Do you think it would be better for me to submit a declaration of permanent departure from Brazil?
2) From a financial point of view, in light of the information I've given you, in which situation would I have to pay less income tax to the Brazilian tax authorities? Being a tax resident in Brazil or ceasing to be a tax resident in Brazil?I'd be happy to send you any additional information or details that you think I need in order to get a more complete picture of the scenario I'm in...
Thank you in advance.
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Sensational post! I've shared it with many friends who have doubts.
One question: I've been abroad for over a year working remotely for Brazil. I didn't leave permanently, because I understand that my job as a public servant keeps my tax residence in Brazil (I hope I'm not wrong..lol), but when filling in the address on the 2020/2019 tax return, I put my address abroad. I intend to do the same on this year's tax return, but I'm not sure if the IRS will understand that I've been out of Brazil for more than a year, due to the fact that I've had an address abroad on consecutive tax returns, and automatically consider that I've left Brazil permanently. -
Vinicius, congratulations on the text.
There was an employee in the company who is Mexican and returned to his country of origin in 2104, he did not make the exit declaration, and does not intend to return to Brazil, he did not have any assets here, he only had to withdraw the FGTS, how could this Declaration of Exit be made?
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Good morning, Vinicius.
I became a resident of the United States in February 2021. This year I intended to file a declaration of permanent departure from Brazil. But, for lack of information, I sent the annual adjustment declaration, thinking that I would make the definitive exit after that. Now, reading your article, I realize I did everything wrong. I also didn't communicate my departure from the country in good time. I read in your article that I can rectify the annual tax return as an exit tax return, but I don't know how to do it.
Could I have some guidance on this?
Thank you very much. -
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Hello, Elton!
Thank you for your interest in our content. Your question is complex. At our office, we have been trying to present these problems regarding keeping financial investments in Brazil to the tax authorities, the Central Bank and the Ministry of the Economy. By the beginning of May, the Central Bank is expected to submit the regulations it is considering for 2023 to public consultation. We hope to help solve this problem of holding investments in shares and other investments once and for all.
The way things stand today, Elton, you wouldn't have a problem getting an undue advantage from the taxation of your investments. Taxation in this case is the same for residents and non-residents. The main difficulty is cross-checking data with the IRS, which may (incorrectly) demand that you file an income tax return.
This is a complex topic that should be simple. It's difficult to give a recommendation per post, just more general information.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Filipe!
Thank you for your interest. Non-resident status does not affect bank financing, as far as I know. What it can affect is keeping the bank account linked to the mortgage for automatic debiting. I've had experience with clients who have kept their mortgage after closing their bank account, so I don't anticipate any problems on this point.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Marleide!
Thanks for the compliment. We don't currently require non-residents to file an income tax return, even those who have assets in Brazil or have received an inheritance. There may be obligations regarding ITCMD (state tax on donations and inheritances), but not the filing of an income tax return.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Good evening!
First of all, I would like to praise the topic, which is very relevant to many Brazilians who have left the country, and also the enlightening and easy-to-understand way in which it was presented.
I have a question regarding the need to file an IRPF return, having already filed the Declaration of Permanent Departure from the Country and having received, afterwards, rental income for a total amount below R$ 28,559.70, the minimum amount received in taxable income to need to file the 2022 Income Tax return. Should I therefore file a DIRF even though I theoretically don't have to pay tax?
Thank you very much and congratulations once again on the article. -
Hello. Sensational blog!
One question: I live in Canada but I'm also a tax resident in Brazil. In the Brazilian tax return, do I put the address of my residence in Canada or do I have to put an address in Brazil? Will the tax office understand that I've been away for more than a year and automatically consider my departure as definitive? That's not my intention at the moment. -
Hello, Rosimeire!
Thank you for your interest. I have argued that missing the deadline for submitting the CSDP does not have the power to extend your tax residency for another 12 months. The most important thing is to submit the DSDP on time. I have expressly dealt with this issue in this text.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Raphael!
Thank you for your interest in our content. The Brazilian model is to submit the DSDP and nothing else in subsequent years. Income tax is levied exclusively at source (i.e. 100% by the source of payment). Of the income you highlight, the main practical difficulty is for buying and selling securities on the stock exchange, as the law stipulates that the custodian of these securities (bank or broker) should be your legal representative to calculate and collect the tax.
This is not happening today because of the Central Bank's regulatory problems. I expressly addressed the issue in this text. We are trying to deal with this problem directly with the Central Bank, and the hope is that, with the entry into force of the New Foreign Exchange Law in 2023, this problem will be resolved once and for all. But for now we can only hope.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Suzana!
Thank you for your question. The address given on your tax return does not have the consequence you describe. It is entirely possible for you to live abroad and maintain your tax residence in Brazil. The point that we find difficult in practice is the registration of corporate acts with the Board of Directors for people with Simples Nacional companies. As the Simples legislation prohibits micro-companies from having a "partner domiciled abroad", the address information is used as an indication that the requirement is not met (even if the person remains tax resident in Brazil). If that's not your point, I don't think you'll have any problems.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Mario Sergio!
Thank you for your interest in our work. If you have left the country permanently and have not returned to Brazil, you will no longer have to file income tax returns. As for the Dirf, there is no obligation to file it if you had income from a Brazilian source of less than R$ 28,559.70 in the same year.
A contradiction in this aspect of the legislation is that there is no obligation to submit the Dirf, but there is still the provision to pay 15% tax on rents. But Dirf is necessary to "match" the tax payment with the taxpayer, so it's a procedure that doesn't make much practical sense.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Suzana!
Thank you for your interest. The final exit declaration is a special income tax declaration. You use the same IRS program to make it. For this rectification, you have to create a new declaration in the format of a final withdrawal declaration and, on the first sheet, state that it is a rectifying declaration and enter the number of the delivery receipt of the original declaration. Then the rest is to fill in the declaration again (the program does not load the previous version you sent in this case).
It's a pain to fill in the same data again, but it works.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Alexandre!
Thank you for your interest in our content. Regarding the tax exit, it is necessary to formalize it, even if it is late, in order to clarify the employee's subsequent situation. It's necessary to better understand whether they simply left without submitting returns or whether they continued to file returns every year. This affects the decision on how best to regularize the situation.
With regard to the FGTS, Caixa has created a smartphone app which informs people that they will be able to redeem their FGTS after they leave the company. The app is a bit bureaucratic, but it allows you to redeem the benefit without any problems with cross-checking data with the IRS.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Vinicius, good afternoon!
First of all, thank you very much for your very enlightening article! However, I still have a question. I'm a federal civil servant in Brazil and I took a leave of absence to attend to private matters for three years. At the moment, I live in Canada and in Brazil I only have fixed-income investments. In this case, do I declare my permanent departure or not? I'm afraid of declaring the leave and it having some impact on my employment relationship with a Brazilian public organization. Thank you in advance!
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Hello, Natalia!
Thank you for your interest. If you sold a property in Brazil as a non-resident, then the DARF form is due on the day you received the money from the sale (if in several installments, the tax is due on each one, in proportion to the price). You would have to pay the tax with a fine and interest.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hi, Juliana!
Thank you for your interest in our work. The Brazilian criterion for defining someone's tax situation is subjective by nature, so it's possible to interpret your context in two ways. A blog post doesn't allow you to analyze it in detail. But in general, you wouldn't have any trouble keeping an unpaid leave of absence once you've left. The bigger question is when the license expires. If you are a non-resident and continue to work (for example, remotely), you will have to inform the agency so that they can withhold the 25% tax correctly. If you return to Brazil to resume work, I don't think you'll have any difficulties.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Suzana!
Thank you for your interest in our content. The Internal Revenue Service's assessment of the matter is not automatic. I argue that the law has created a relative presumption, that is to say, that the law presumes that a person who is absent from Brazil for 12 consecutive months no longer has a definitive intention and therefore ceases to be a tax resident. When it says "relative", it means that the presumption admits proof to the contrary, such as the filing of income tax returns. This understanding is consistent with the stance adopted by Carf in 2020, in the judgment of the "Leandro de Aguiar" case.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hi, Leandro!
Thank you for your interest in our content. As the Brazilian criterion for defining someone's tax residence is subjective, it is possible to interpret your and your wife's situation in different ways. It's not possible to analyze in a blog post which would be better. More generally, I can say that as long as your wife remains a tax resident in Brazil, there isn't much change from what you already know. After leaving, it will probably be necessary to migrate the company from Simples to Lucro Presumido (if the company is currently opting for Simples).
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Francisco!
Thank you for your interest in our content (and for the compliment). I believe that your own account makes it clear that your intention to move to Spain is now temporary. And in this context, it makes sense for you to maintain tax residency in Brazil, even if you live in Spain for a year or more. Brazil and Spain have an agreement to avoid double taxation, which I believe is interesting for you, especially if you stay in Spain long enough to have to declare income tax there too.
From a financial point of view, there should be no change in the tax burden when it comes to financial investments, but today's regulations are unfavorable to maintaining regular investments. We have been working to try to change this unfortunate reality. Regarding the INSS and private pensions, the IR rate on redemptions changes to 25%, as a rule, which is usually unfavorable. I believe that these would be two more elements to justify not giving the tax exit in a case like this.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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I left Brazil in October 2021 to live in Portugal and I have no intention of returning. I made the communication of definitive departure and now I am in doubt as to whether I should declare the definitive departure this year or next. When I file my annual tax return, I have a significant amount to be refunded. And when I file the final withdrawal tax return, I have an amount to pay. I don't want to lose the money, I want to receive my refund. Would it be a problem to make the declaration normally? I haven't closed my accounts in Brazil yet either.
I'd really appreciate it if you could give me an answer/guidance, as I'm very worried.
God bless you and congratulations on the site and the information. It is very difficult and contradictory to find information about the Final Exit.
Good night
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Hello, Rafael!
Thank you for your interest. You are using the same program. Instead of opening the old declaration, you'll need to create a new one, choosing the format of declaration of definitive departure from the country (DSDP). On the first tab, you indicate that it is a rectifying declaration, and enter the number of the delivery receipt of the annual adjustment declaration (DAA) that you want to correct.
This obliges you to fill in all the data again, but it is the only opening that the Receita program allows to carry out this procedure.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Good morning Vinícius, excellent blog - up-to-date and extremely relevant information for non-tax residents.
In my case, I left Brazil in 2015 and am currently a tax resident in Australia (there is no tax agreement between the countries). At the time, I only kept a savings account at Caixa Econômica Federal and a VGBL investment. Today, I want to buy a property in Brazil and take out a mortgage with Caixa (a type of financing for emigrants). To do this, they ask me to open a current account at Caixa and provide an address in Brazil (in this case, my parents').
My manager said that the Caixa system doesn't specify whether the client is a tax resident or a non-resident.
What should I do to protect myself legally so that I can open a current account and take out a mortgage? Do I have to send an email to Caixa with proof of my final tax exit?
Thank you for your attention and congratulations on your work!
Maíra
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Good morning Vinícius, excellent blog - up-to-date and extremely relevant information for non-tax residents.
In my case, I left Brazil in 2015 and am currently a tax resident in Australia (there is no tax agreement between the countries). At the time, I only had a savings account with Caixa Econômica Federal. Today, I want to buy a property in Brazil and take out a mortgage with Caixa (a type of financing for emigrants). To do this, they ask me to open a current account and provide an address in Brazil (in this case, my parents').
My manager said that the Caixa system doesn't specify whether the client is a tax resident or a non-resident.
What should I do to protect myself legally so that I can open a current account and take out a mortgage? Do I have to send an email to Caixa with proof of my final tax return?
Thank you for your attention and congratulations on your work!
Maíra
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Congratulations, Vinícius! The text is excellent, clear and very complete! I went to Canada in October 2020, initially with no definite intention. However, I became a permanent resident and filed a Notice of Exit stating the date after I completed 12 months in Canada (October 2021).
If I understand correctly, I need to do the DSDP this year for the months of January 2021 to October 2021. During this period, I only had money in a checking account in Brazil, but no other income or employment. My employment was in Canada and I even paid income tax in Canada. When declaring the DSDP, should I therefore inform the salary received in Canada and will I be able to offset the tax due against the tax I have already paid in Canada? And how do I declare the amount in my current account in Brazil on 10/15/21? Would it be enough to look at the statement and inform the amount that was in the account on that date? Thank you
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Hi Vinicius, thank you so much for the post, it helped clarify a lot.
I left Brazil in Sep/20 and only started working in Dec/21. Can I consider my departure as Sept/22, considering that I had been on temporary leave for a year?
Another thing, my husband doesn't want to leave the country for good yet for fear of losing his bank account, is there any problem with us having different residences?
He thinks I need to leave because I've changed my title. Can you tell me if the tax office matches the information with the electoral system?
Thank you in advance! -
Good evening Vinicius, congratulations on your work! I have a question, for those who make the Declaration of Definitive Departure from the Country (DSDP), is the opening of a current account of domiciled abroad (CDE) or current account for non-residents, only mandatory for those who wish to keep financial resources invested in Brazil in national currency? If not, is it not compulsory?
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Hello, first congratulations on the post!
I'm submitting my declaration of definitive departure from BRAZIL now, but I sold my house in Brazil after the informed date of departure! I left on 08/21 and sold it on 11/21.
For tax returns, shouldn't I report the sale and file the GCAP separately without attaching it to the return? -
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Hello, Felipe!
Thank you for your interest. If the sale of the property took place after the tax exit, then it was already done as a non-resident, and would not need to be declared in the DSD. The IRS, as far as I know, has not said that it is obligatory to attach this information to the tax return, only to pay the tax correctly.
The mechanics of the program mean that you can fill in the GCAP program with the information about the sale, but you will need to enter the country in which you are a tax resident in the GCAP program and the period (from 08/2021 to 31.12.2021). You can then import the data into your outgoing declaration. It's different from normal, but it can be done.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Felipe,
With regard to bank accounts, we didn't find any provisions from the Receita Federal, only from the Central Bank. And for the Central Bank, the focus of the legislation is on the financial institution, rather than the customer. You don't lose the account automatically, but under the current rule, the bank is obliged to close the account when it becomes aware that you are no longer a tax resident in Brazil.
The Central Bank is expected to release for public consultation the regulations for the New Foreign Exchange Law, which will come into force in 2023. Positive changes are expected, which will allow the account to be maintained normally. But it's too early to be sure. You'll have to be patient.
Cheers!
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Hello, Rosita!
Thank you for your interest. I have argued that the criterion used by Brazil, "definite intent", is subjective and allows a person's situation to be interpreted in different ways. In this case, it is possible to argue, for example, that due to the employment relationship with Brazil, it would not be the case to present the declaration of definitive departure. It's worth saying that this conclusion could lead to double tax residency (continuing to be a tax resident in Brazil and becoming a tax resident abroad, paying income tax on salary in both countries).
It is also possible to argue the opposite, so that the permanent withdrawal is made. In this case, the public service needs to be notified of the tax withdrawal in order to withhold 25% of IRRF on the amount of remuneration received.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Edivaldo!
Thank you for your interest. The Central Bank makes it compulsory to maintain any bank account, whether it has financial investments or not. In any case, when the intention is to liquidate all the investments by closing the account, there is only the closing of the account and liquidation of the amounts, without opening a CDE.
Changes to the CDE rules are expected soon, in view of the New Foreign Exchange Law, which comes into force in 2023. I recommend waiting a while to find out what the Central Bank is going to propose.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hi Vinicius. First of all, congratulations and thanks for the text. Very enlightening!
I had a question about what to do in my case. I left Brazil in December 2021 on a temporary basis because I didn't know if I would be able to get a job abroad. During this period I was on vacation / leave from my job in Brazil, so there were times when I received payments. Now I have a job abroad and have ended my employment in Brazil.
Could I use the date of resignation in Brazil as the date of definitive departure from the CSD?
I understand that in my case this is especially important because if I have to use the date of physical departure in Brazil, I should already submit the DSDP in Apr/2022, but if it makes sense to keep the end date of the employment relationship, I would send a DIRPF in 2022 and DSDP in 2023, correct?
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Excellent text, Vinicius!
I have a question that hasn't been addressed.
I ceased to be a resident of Brazil in 2014 and never did my DDSD.
I still live abroad, but a business opportunity has arisen and I would like to open an eirele in Brazil this year.
What would my tax situation look like if I opened this company? I live in Canada, and I know that the country has an agreement with Brazil, but what would the income tax return for this company look like? Can I only declare it here?
Thank you very much for your attention.
Cheers. -
Hello, my sister-in-law left Brazil in 1986 and got married in Austria. She doesn't remember if she did the DSDP or the communication. She lives there as a married woman. It so happens that in 2021 she received an inheritance of 10% from her father's estate, which she donated to her mother. She also received a cash donation of R$ 50,000.00 which was transferred to her abroad. As she participated in the inventory and her CPF was irregular, she had to regularize her CPF.
1) Is it necessary for her to do the DSDP retroactively, in which case for what year?
2) Will she need to declare these amounts that she received as an inheritance and gave as a gift to her mother?
3) Will she need to declare these amounts she received as a donation?Thank you for your guidance
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Good morning Dr. Vinícius!
For those with double tax residency (Brazilians living in Paris), is there an international agreement between Brazil and France to avoid double taxation of income earned in that country?
In the case of the Declaration of Final Departure from the Country (DSDP), which account should be entered in the declaration for a possible refund, since, in principle, you would have to close the active accounts in Brazil after making this declaration?
Thank you in advance!
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Well Vinicius, first of all, thank you for your clarification and help.
I came to Canada on January 3, 2022 and I don't intend to return to Brazil. I've sold my house and I have investments in Brazil that I'm gradually liquidating and bringing back here. My questions are: do I leave this year or wait until next year? I'm going to open an account with a digital bank, because I pay for the internet from my mother's house. Is there any problem or impediment with this?Thank you in advance,
Marcos Nunes -
good afternoon
the post was very enlightening, leaving me with only one doubt
I moved to Portugal and I haven't declared my income tax yet because I'm a minor, but I need to make my definitive exit declaration, which I have to have my last income tax declaration. The deadline has passed for filing the tax return, but I need to leave permanently this year. I'd like to know if there's any way of declaring permanent exit without a tax return.
thank you in advance -
Hello, Giovanna!
Thank you for your interest. I believe you said that you missed the deadline for submitting the definitive exit notice (CSD) and want to submit the definitive exit declaration (DSDP).
I have argued that missing the deadline for submitting the Notice of Final Exit cannot have the effect of making someone a tax resident in Brazil for another 12 months in a row, if you have already left Brazil with the intention of losing the "definitive spirit". I talk about this in this other text. I understand that you can take advantage of the deadline for submitting the Declaration of Final Departure from the Country (May 31st) to get your situation in order.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Marcos!
Thank you for your interest. I don't see a problem with you formalizing the tax exit, as long as the collection of taxes after the exit date is consistent with this change in status, in order to avoid problems with the IRS. Bank account rules are the brainchild of the Central Bank, not the IRS, and new rules will soon come into force (2023), which will probably be more favorable than today's rules.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Rodrigo!
Thank you for your interest. It is possible to open a sole proprietorship limited company (the EIRELI is being phased out) even if you are a non-resident. In this case, the company cannot opt for Simples Nacional, but for Lucro Presumido. As a non-resident, there is no obligation to file your income tax return (but I recommend that you regularize your non-resident status with the IRS). There are also some regulatory issues for the company before the Central Bank (registration in the RDE-IED module), which will possibly be simpler from 2023, when the New Foreign Exchange Law comes into force.
From the Brazilian-Canadian point of view, your income from this company will come from the distribution of dividends, which is exempt in Brazil and taxable in Canada (it is recommended that a local professional clarify the impact of this planning on the Canadian side).
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Daniel!
Thank you for contacting us. If your sister-in-law has been living abroad since 1986 and hasn't filed any tax returns in Brazil since then, I usually recommend formalizing her tax returns for at least the last 5 years, to minimize the chance of her situation being questioned with regard to income received from abroad. Non-residents do not file income tax returns, even if they have assets in Brazil, receive donations, etc. These donations are declared in accordance with state law, for the collection of ITCMD (gift and inheritance tax).
It would be a case of understanding why her CPF was irregular. Perhaps it was because of the way the inheritance/donation received was declared on the estate/donor's tax return. In any case, any regularization of her CPF must take into account the fact that she received the inheritance/donation as a non-resident, in order to avoid legal risks.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Henrique!
Thank you for your interest in our content. Regarding the choice of exit date, the legislation does not provide for choosing the most convenient date. It states that the tax exit date is the day on which the person left Brazil to go abroad ("definitive exit" rule) or the day on which they completed 12 months of absence from Brazilian territory ("temporary exit" rule). There is no legal provision for a third rule, in which the person leaves for tax purposes on the date on which he or she ceases to have a definitive intention while abroad. It would be theoretically possible to defend this third position, but there are certainly legal risks. And yes, your understanding of how to declare the exit depending on the date chosen is correct.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Patricia!
Thank you for your interest. If you left Brazil in September 2021, you can consider September 2022 as a tax exit, according to the temporary exit rule.
It is legally possible for one member of the couple to have a tax return and the other not, but I tend to analyze these situations with some caution, as the tax return system has not made provision for this. In the long term, it can be difficult to explain the couple's assets using only one spouse's income.
The IRS cross-checks some information with the Electoral System. Normally, if a person fails to vote in three elections in a row, their CPF is suspended (this is a check to see if the person in question has died without registering their death in the CPF system). If the person regularizes their situation in the Electoral Court, they need to go to the Revenue Office to update their CPF, because the electoral regularization is not cross-checked with the Revenue Office (something totally illogical, but that's how it has happened).
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Thiago!
Thank you for your interest in our content. Your reading is correct about the delivery of the DSDP, the tax exit date and what it includes. Regarding the current account in Brazil, one of the difficulties is that the bank's statement does not break down the dates. In this case, we have reported what is on the statement provided by the bank, and we make a note on the assets and rights sheet explaining that this is the balance as of Dec. 31, not Oct. 15. This is because the information you received from the bank is the same as the information the bank gave to the IRS, and so the procedure minimizes problems of cross-referencing information (besides the fact that it is very difficult to have well-documented information about your banking situation on a date outside the standard required by the bank).
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Maíra!
Thank you for your interest. CEF does not offer a domiciled abroad account (CDE). We already serve clients who have real estate financing with CEF but CDE with another bank. The restriction that exists today is not to obtain the mortgage, but only the bank account itself. In this case, you would be entitled to the "Over-the-Counter Rate", which is slightly more expensive than if you had an account with CEF. In this case, the most "roundabout" solution would be for you to open a CDE at another bank, and obtain bank financing at CEF at this counter rate, proving your income in Australia.
It's worth mentioning that the Central Bank's restrictions on CDE are aimed more at the bank, not the customer. The CDE rules are expected to change from 2023. We are waiting for the public release of the Central Bank's proposal for this reform, which should take place in May. Depending on what changes are made, it is quite possible that from 2023 you will be able to have a CEF account even as a non-resident.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Maíra!
Thank you for your interest and your compliment. We already serve clients who are non-residents and have real estate financing with Caixa (CEF). What happens is that, as non-residents, they can't keep a bank account with CEF, only with another bank. As a result, they end up paying interest at the "Over-the-Counter Rate", which is a little more expensive, because CEF doesn't offer bundled sales of other products (automatic debit account, credit card, etc.).
I hope that from 2023, with the entry into force of the New Foreign Exchange Law, CEF will change its attitude and allow non-residents to open bank accounts, and not just real estate financing.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Carolina!
Thank you for your interest. I have argued that missing the deadline for submitting the Notice of Final Exit cannot have the effect of making someone a tax resident in Brazil for another 12 months in a row, if you have already left Brazil with the intention of losing the "definitive spirit". I talk about this in this other text. I understand that you can take advantage of the deadline for submitting the Declaration of Final Departure from the Country (May 31st) to get your situation in order.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Vanessa!
Thanks for the compliment. The problem you mention stems from the fact that there is no simplified deduction in the final tax return, only the legal deductions. Filing an annual tax return (the "normal" return) is possible, but it's worth mentioning that if you do so, you'll also have to report assets and income earned abroad.
I hope I've helped. If you need more specific advice, just contact us at WhatsApp or by e-mail contato@tersi.adv.br to make an appointment!
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First of all, congratulations on the blog and its high-quality content!
I'll be an expat in July and will be living/working in England. My biggest concern about leaving permanently is losing my bank and investment brokerage accounts. As I intend to keep my BR money in the country and return to live here in the future, informing the bank and brokerage house would prevent me from continuing with the accounts (I have long-term investments and investments with losses such as shares and FIIs that would not compensate for the redemption/liquidation).
How to operate the account and the investments so as not to create too much fuss and reduce the risk of being caught in the fine mesh? (e.g. keep the investments as they are with no new contributions; no more buying and selling on the stock exchange; have returns below x/year; reinvest in tax-exempt assets....).
I understand that in terms of taxation I'm being taxed the same as a resident and directly at source (I won't receive rent or a salary in BR, just the income from my current investments), so I wouldn't be evading taxes. And what would be the likely penalties if I were to be caught in a possible inspection?Reading your blog made me anxious to find out more about what would change with the bill on the exchange rate framework that will become law in 2023, and whether it would help people who are in the same situation as me.
Thank you!
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Congratulations, Vinícius! The text is excellent, clear and very complete! Thank you very much for the clarifications.
My wife and I are starting the process of leaving the US permanently. We've actually been here in the US since January. We plan to stay here for at least 3 years and then return to Brazil.
I have some investments in Brazil and I'd like to keep them. I have a rented property, which I think has already been clarified here in your text, I already know what to do.
However, I'm having doubts about my brokerage/banking investments. I know that CDBs are easier to hold, but I'm still working with my advisor to better understand what we can do with Shares, Real Estate Funds (FII) and Investment Funds.
Do you have any tips for those who are starting the process and still have time to take the best route?
Thank you very much! -
Hello, Laura!
Thanks for the compliment. I've already written about the main problems for those who leave for tax purposes and keep bank accounts and financial investments in Brazil in this text. I've been working towards the goal of having the New Foreign Exchange Law solve these problems once and for all from 2023. The Central Bank is expected to open a public consultation on the regulation of the New Law in about 3 weeks' time. When it comes out, I will certainly write a new text.
The current version of the IN, which deals with the criteria used by the IRS for fine mesh cross-checks, is provided for in the IN RFB 2.065/2022. Basically, at least R$ 40,000/year in exempt income or income taxed exclusively at source (in other words, all financial income that doesn't involve buying and selling on the stock exchange), and stock exchange transactions that involve "hard fingers" (day-trading or selling at least R$ 20,000/month in stock exchange securities). Below these limits, the tax authorities' system has not indicated any tax debts on the CPF.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Celso!
Thank you for your interest. Your questions are very similar to the ones I just answered for Laura. The main problems for those who leave for tax purposes and maintain bank accounts and financial investments in Brazil are described below in this text. I've been working towards the goal of having the New Foreign Exchange Law solve these problems once and for all from 2023. The Central Bank is expected to open a public consultation on the regulation of the New Law in about 3 weeks' time. When it comes out, I will certainly write a new text.
The current version of the IN, which deals with the criteria used by the IRS for fine mesh cross-checks, is provided for in the IN RFB 2.065/2022. Basically, at least R$ 40,000/year in exempt income or income taxed exclusively at source (in other words, all financial income that doesn't involve buying and selling on the stock exchange), and stock exchange transactions that involve "hard fingers" (day-trading or selling at least R$ 20,000/month in stock exchange securities). Below these limits, the tax authorities' system has not indicated any tax debts on the CPF.
The great difficulty today is that we don't have a regular way to maintain investments in FIIs, or in other securities on the stock exchange, because of the inadequate regulation by the National Monetary Council (which is responsible for the Central Bank and the CVM). That's why the New Foreign Exchange Law is so important.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Good evening,
I left Brazil in September 2018 and haven't made any definitive exit declarations, but I've been filing my IRPF tax returns as normal (declaring how much I earned and paid taxes in Canada + income/equities/fii/dividends I have in Brazil).
1) I've seen in previous comments that you indicate rectifying in some situations, in my case I would have to rectify 2018, 2019, 2020 and then I wouldn't need to fill in 2021?
2) And what about the declaration of my investments that I declared in all those years (e.g. capital gains, dividends, etc.) after I rectify all those years, would I have to redo it on another form/program?
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Good morning Congratulations!!! Excellent material, very enlightening and very complete. You can see the dedication that went into making it.
I'd like to get some advice on my particular situation.
I left Brazil and moved to Argentina in 1999. I didn't do the CSD or DSCP because I didn't know about it. That's why I've continued to file my income tax returns every year because I have a rented apartment and a bank account in Brazil. Is the law after 1999?
I ended up finding out about leaving the country for good because I started researching what I would have to do if I were to return to Brazil in about five years' time.
In Argentina I am married to an Argentine (i.e. non-resident) and I have children. I work and tax here in Argentina as a professional working for a company and on the assets we own jointly with my husband.
I want to understand and know the possible consequences of finding myself unintentionally in this situation and what I should do or at least the possible solutions to regularize it.
I also saw the comments about the delivery of the DCBE, about which our assets do not exceed US$1,000,000.00 (one million US dollars). I couldn't understand how it affects the value that was in force in 2019.
Thank you in advance for your time and dedication. -
Good morning.
Excellent article. Very enlightening, no doubt.I have a question. I left Brazil in August last year and didn't do the CSD. When I hand it in now, it says that I can only hand in an exit document dated 2022. What should I do? Do I do the DSDP now and not hand in the statement? Do I do the DSDP and hand in the statement next year?
Thank you in advance for your help.
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Hello, Amanda!
Thank you for your interest in our content, and thank you for the compliment. I have argued that missing the deadline for submitting the Notice of Final Exit cannot have the effect of making someone a tax resident in Brazil for another 12 months in a row, if you have already left Brazil with the intention of losing the "definitive spirit". I talk about this in this other text. I understand that you can take advantage of the deadline for submitting the Declaration of Final Departure from the Country (May 31st) to get your situation in order.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Eliza!
Thank you for the compliment and your interest. The law actually dates back to the 1950s, and as early as 1997 there was a normative instruction in force similar to the current one (which is from 2002). In 1999, when you left the country, it was a paper procedure.
As for the other questions, these are very complex issues to deal with in a blog post comment. Depending on the situation, it may be a case of correcting the previous declarations (to inform that you were a non-resident and made a mistake) or taking advantage of the benefits of the Brazil-Argentina agreement to avoid double taxation and regularizing everything as a non-resident. I can really only give you a recommendation during a consultation.
Regarding the DCBE, it is only applicable if you are considered a tax resident in Brazil on December 31st of each year and, abroad, have assets abroad worth at least USD 100,000 (until 2019) or USD 1 million (from 2020 onwards). Imagine that every year you take a snapshot of the value of your assets, to make it clear whether there is an obligation to file the DCBE that year or not.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Leonardo!
Thank you for your interest in our content. I'm not entirely sure I understand your context. I'm guessing that, since 2018, you've been filing a Brazilian tax return reporting assets and income held in Brazil and Canada. This is consistent with dual tax residency, and the Brazil-Canada agreement can grant benefits for this situation.
If you're complying with the rules correctly, then it wouldn't be a case of rectifying previous declarations. This is where I'm not sure I understand the problem. As long as you are a tax resident in Brazil, you will need to submit declarations. After the tax exit, there are no more declarations to file in Brazil. It's only if you rectify declarations to say that you are no longer a tax resident in Brazil (for example, by replacing a "normal" declaration with a declaration of definitive exit) that it makes sense to say that you would no longer have to file subsequent declarations.
We don't have another form/program for you to fill in information about assets held in Brazil after the tax exit. When you receive income from a Brazilian source, the paying source would have the duty to declare that they paid you the income, through a declaration called Dirf (withholding tax declaration). In some cases, such as property rentals, the person who submits the Dirf is your attorney in Brazil, but this is not the case for financial investments.
Your context was confusing to me, but I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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First of all, I would like to congratulate you on your detailed and consistent analysis.
If it's possible, I'd like your opinion on my situation. I am Brazilian, retired in Brazil and currently living in Portugal. I haven't done the DSDP and I don't intend to do it, because I don't consider my departure from Brazil to be definitive and I don't want to have any problems with the 25% automatic collection of income tax for retirees who make a definitive departure declaration. I have a total exemption from income tax on my retirement benefits due to a serious illness, but I know that this exemption could be disregarded by the IRS if I did the DSDP. I regularly file my DIRPF, declaring my retirement income and a house in Brazil. I don't receive any income in Portugal and I don't declare any income in the country.
My question is simple. I was told that those who leave Brazil for a long time, in a situation similar to mine, must return to the country at least once a year, so that their final departure is not automatically declared by the IRS. I'd like to ask if this information is true and, if so, what the minimum period of stay in Brazil should be to ensure compliance with this requirement.
Thank you very much for your attention.
Sincerely,
Márcio -
Hello, Marcio!
Thank you for your interest in what I write. With regard to maintaining dual tax residency after 12 months away from the country, I have argued that it is possible, as long as proof of the existence of a definitive intention is provided (for example, by submitting the "normal" income tax return, complying with all Brazilian rules, as you have been doing). I don't have a specific text on the subject today, but I do touch on it in this text on the definitive mood.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Vinicius! Congratulations on the content, it was very enlightening.
I'd like to ask a question about a particular case. I did a study and work exchange in Ireland starting in Oct/2020. The initial duration was 8 months, but it ended up extending to a year and a half, having returned to Brazil this month (Apr/2022). I didn't make the notification of leaving the country and last year I submitted the DAA normally. I am in doubt as to what the correct procedure is for this year, given that I was employed in Ireland for the whole of 2021. Are the amounts received abroad subject to taxation in Brazil? Would it be better to file an Exit Declaration?
Thank you in advance,
Fernanda -
Good morning. Beautiful post. Elegant and technical. It's very important to emphasize to those who decide to leave Brazil for good the importance of keeping an attorney, especially for those who have rented property, because in this case income tax will be levied at source when the renter is an individual. In this case, the tax withheld must be paid immediately. The attorney must submit a declaration called a DIRF (Declaração de Imposto de renda Retido na Fonte) within the deadlines set by law, which is usually in February of the following year. This declaration contains the gross income from the rent received, the tax withheld and, above all, the tenant's details. The attorney must send this DIRF via the application available on the internet atwww.receita.economia.gov.br. In addition, the procurator must send the annual reports of the rent received to the tenants so that they can pay income tax and even receive a refund. If the property is rented to a legal entity, or if the tenant is a legal entity, this is the tenant's obligation and not that of the attorney.
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Good morning! Congratulations on the text.
First, I'd like to add an observation to your text: the requirement for a specific account for those who leave permanently is also "dumb", because requiring a 4373 investor account implies less federal tax revenue, since non-residents generally pay less tax than residents. It's also "dumb" because it encourages those who have left to take their financial assets abroad, reducing national savings.
Now a question, if possible. My daughter has been a non-resident for 3 years, she didn't file her Exit Form (she missed the deadline) but she filed her Exit Form on time and has a bank account, including a financial investment, so far without any problems. I would like to know what kind of problem/punishment/fine she could face as a result of this irregularity. Thank you in advance. -
Hello, Vinicius!
Congratulations on the excellent and enlightening article, which is undoubtedly the best and most complete on such a complex subject.
I have been working and living in the United Arab Emirates since October 2012, when I generated the CSD. However, due to lack of knowledge, I ended up not submitting the DSDP, and 10 years have passed. Would it still be possible to submit it even if the 5-year deadline had passed? I'm trying to open a CDE bank account in Brazil and the bank is asking me for the DSDP.
In your experience and understanding, does the fact that I have issued the Communication of Definitive Departure already characterize me as a non-tax resident in Brazil?
Thank you
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Good morning. Great material to understand about the Declaration of definitive departure from the country!!!
I have a son who moved to the USA in 2021 and started studying at university. I declared him as a dependent in the past, but as he started working there in the USA in 2021 I didn't declare him as a dependent this year. In this case, should my son file a tax return in Brazil or file a declaration of permanent departure from the country, or should he only file a tax return in the USA and not do anything here in Brazil? He didn't have any income, assets or investments in Brazil in 2021. Thank you for clarifying my doubts, -
Hello, I left Brazil to live in Spain in March 2008. In May 2012 I moved to Chile. I filed my income tax return in 2007, not in 2008 (I had only worked in Brazil for 2 months) and then not again, since I had no income or property in Brazil. I worked in both Spain and Chile and declared it there. I also have an apartment in Chile. I didn't declare my permanent departure due to lack of knowledge. My CPF is OK. In September 2021 I returned to Brazil to buy a motorhome and travel around South America for two years. To do this, I brought dollars (I declared them to the Federal Police at the airport), made international transfers from my partner's account in Chile and sent remittances to Brazil. I'm leaving Brazil this month. Do I have to file an income tax return in 2022 because of this? And in 2023? Do I have to file my final tax return retroactively? How would it be since I won't be in Chile to go to the Brazilian Consulate there? Thank you.
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Good afternoon!
Very good blog! Congratulations! One question: I've been in Australia since February/22 to study for a doctorate for 3 years. But I've also been working as a consultant for the OAS, earning in dollars, for two years. As I intend to return to the country at the end of the course, I don't want to leave permanently and remain a tax resident in the country. But do I need to declare this income I receive from the OAS by sending it abroad from the US to an Australian bank? Can I declare it as exempt income? Thank you in advance -
Good morning Dr. Tersi
Congratulations on making your knowledge available to the confused, worried, lost and needy. My sister married an American about 50 years ago, lives in the USA, has visited Brazil several times, I did (I am an attorney) some IR and the last one was in 2002 (EX) - from then until 2021 (EX) she was exempt and I need to do it this year, because she received a lawsuit (from my deceased mother) and exceeded the ceiling of R$300,000.00 (her savings plus half of an apartment with me (also inheritance). He hasn't filed a Declaration of Exit to date. In the past few years we have sold another apartment (inheritance), she sold another one of hers, we received inheritance from her grandfather). I saw from your article that it's irregular. At the moment, we are in the process of selling the joint apartment (and she has money in savings - Itaú. I would like to ask: Pros and Cons of doing the DSDE or waiting for the Lion's claws? To confirm, in the USA, the marriage is one of separation of assets, she has a joint account with her husband, she must have received some remuneration from the workshop and she has no assets. A parallel question, on the IR 2022 (EX) I have to put her as married, but I'm leaving her spouse's CPF blank (he doesn't have one) - does that set off a flag (red?)?
One thing that also worries me is the (impossible) cost of maintaining a savings account (will the new Foreign Exchange Law "solve" it?). Sorry for the length. Thank you. Congratulations once again - I did a lot of research on the internet and only felt comfortable writing on your blog, which I've never done before. -
Hello,
I've been living in the US since 2012 and since then I've always declared my personal income tax as exempt to avoid problems with the IRS, but I understand this is wrong?
I have fixed-income investments of a lower value in Brazil. I don't have a bank account and I don't have any property in my name.
I want to avoid problems with the IRS and would like to know how I should proceed this year?
1. Do I have to make an exit declaration, in this case for 1/1/2021?
2. Should I not file a tax return this year because after 12 months I will be treated as a non-resident?
3. Do I have to file an exit tax return and also rectify the last 5 years of my income tax returns, stating my tax situation here in the US?
If none of the 3 options above are correct, could you help me with this?
I hope you can help me!
Thank you,
Keilla -
Hello.
Very good. It helped me a lot.
But I still have a few questions and would be grateful if you could help me.
I left the country in 2018 on a temporary basis but later decided to live abroad.
To date, I have not handed in the Final Exit Declaration.
The last Income Tax Return I filed was for Calendar Year 2018 - Fiscal Year 2019.
From what I understand from your great article, I need to submit the DSDP in Calendar Year 2019 - Fiscal Year 2020 (Year following the last declaration filed. Is that right?
I submitted my 2018 tax return because that year I started investing in fixed income. As of 2019, I'm also investing in variable income.
By submitting the DSDP in the 2019 DIRPF, is it not necessary to list my investments in this declaration?
As I'll be delivering late, will I have to pay the fine for the delay?
Could the fact that I haven't made the request to the sources paying the income (dividends and profits) cause problems with my CPF?Thank you in advance for your attention.
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First of all, congratulations on the articles. Very comprehensive and informative.
My German ex-wife used to live in Brazil with me, but she returned to Germany permanently in May 2021. She didn't make or miss the deadline for the Notice of Permanent Departure, which you say is not a problem, right?
The fear is if the declaration falls into the fine mesh, and the IRS doesn't accept her definitive exit in 2021.She received payment of a precatory in June 2021 (after leaving), bought from a third party as a form of investment.
Accessing the pre-filled declaration, I saw that the bank (CEF) that paid the precatory declared the income as received from a company. But the precatory was of a maintenance nature and should be declared as received in accumulated form (the amount of IR due to be paid would be much lower, as it would not be added to your taxable income from your work here in Brazil until you left).The fear is that she'll declare the precatory as having been received in accumulation, fall into the fine mesh (the explanation of the precatory's error is easy) and they'll implicate her in the lack of a Definitive Exit Notice, keeping her resident status and wanting to tax her earnings in Germany after 06/2021.
In your opinion, will we have problems with the revenue?
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Hello Vinícuis,
I have one last question: I made the retroactive exit declaration, as you instructed, and when it comes to generating the DARF to pay the tax due, the deadline for payment is April 30, 2020. Is there any way of generating a DARF that is valid and already includes all the fines?
Thank you!
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Hi, Vinicius. Your content is very interesting.
If possible, I would like to understand a few points.I've been living in Canada since October/2019. When I left Brazil, I closed all my bank accounts, except for one, but it doesn't have any money or investments. At the time of my departure, I took all my little money (about 5,000 dollars, at the time something around 25 or 30 thousand reais).
In 2020, I filed my income tax return normally using the IRPF app, declaring my earnings from work (CLT) for 2019.
In 2021, I filed my income tax return again, but this time it was zero, because I already declare income in Canada and I didn't have any earnings or investments in Brazil in 2020 (my only bank account is still empty).
Finally, today, in May 2022, I filed a new declaration with nothing in it, because I still have nothing in Brazil. Whether it's investments, property or any kind of earnings.
However, my question comes in here: Since I'm waiting until the end of the year to find out whether or not I'll be returning to Brazil, I understood that I shouldn't make my final exit in 2022, but if I decide to stay in Canada, I intend to do so in 2023.
My interpretation may be wrong, but is the strategy valid?
If not, do I still have to send in my final tax return this year (even though I've already declared my income tax for 2022)?Thank you very much.
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Hi Vinicius, congratulations on the content of the site, it's the most complete I've found!
I have a question about the solution suggested for Antonio's situation. How would the declaration of bank investments and rental income (DARFs paid with code 190) look in the "normal" declarations that were replaced by definitive exit, considering that 2 declarations would be rectified retroactively? The income was initially taxed according to the rules of tax residence in Brazil, which would not be correct when rectifying the declarations for definitive withdrawal. Would it still be possible to apply this solution?
In addition, when making an exit declaration, it is necessary to inform the assets situation at the end of the tax year (referring to the year of the declaration) and the situation on the date of non-resident status. How should the change in assets and rights be documented if the resident status took place in the past on a date prior to the year of the declaration? Using Antonio's example, this would be the case for the 2021-2020 rectification, since the exit took place in 2019.
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Hello Vinicius! Thanks for the brilliant clarification! However, I still have doubts about a specific situation: I did DIRPF for the base year 2017, in this case, referring to the assets acquired by the taxpayer by the post-inventory sharing formal. However, the taxpayer has been living in Germany since 2006 and has not filed the DSDP! He wants to regularize the situation. If I file an amended DIRPF for that base year, will the problem be solved? Can the date of departure be cited a posteriori, i.e. for 2017? Thank you!
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Good afternoon Vinicius, how are you?
I would like to know if the resolution CVM RESOLUTION No. 64, OF FEBRUARY 7, 2022 has made any significant changes for individual investors in their dealings with banks and brokers, given that it appears to have simplified the process of registering investors and sending information to the CVM and BACEN.
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Hello Vinicius, super relevant content, thank you very much for publishing. I have a question, I am currently residing in Panama since November 2021. I am working here and paying the corresponding income tax, withheld at source. I have not left Brazil definitively as I have just filed my income tax return in May 2022. I have some financial investments in Brazil of non-relevant amounts, and no other assets.
In January 2023, I'll be moving to the United States and I want to understand if it's really worth leaving Brazil for good. I will potentially join my company's 401K fund and maybe buy a house in 1-2 years. Reading your article, I see that permanent withdrawal is super relevant for qualified investors and owners of assets in Brazil or abroad, but would it be the same for those who don't have large amounts invested in the capital market? In my case, would it be ideal to maintain dual tax residency and continue declaring annual income tax on account of financial assets?
Thank you! -
Dr. Vinicius, thank you very much for all these clarifications.
Please comment on the situation of a person who left Brazil in 2000 and, out of ignorance, did not leave the country permanently. When he left, he closed his bank account, sold his car and left no assets in the country, except for a very small private pension reserve. In those 22 years, he spent around 120 days in the country, in periods of 15-20 days every two years, and his CPF is still "Regular". Based on what the Federal Revenue Service states on its website - "A non-resident in Brazil is considered to be a natural person 1) who does not reside in Brazil on a permanent basis; 2) who permanently leaves the national territory on the date of departure, or after 12 consecutive months of absence, in the case of not having delivered the Communication of Definitive Departure from the Country. (...)" - is it correct to assume that the person does not need to take any bureaucratic steps before the RFB, since his last 20-day visit to Brazil was in December 2017? -
Good morning, excellent article.
I have a case of a friend who asked me to make her Declaration, she left in July 2021, she had no income, I made the declaration, everything was fine.
Afterwards, I questioned her husband, because he had an MEI until November 2021, he canceled the MEi but hadn't made his declaration.
I filed his tax return, but I couldn't include his wife as a dependent because her tax return had already been filed.
My question is whether I can concell her declaration and put her as a dependent, to take advantage of the dependent discounts? -
Good evening and very good article. I'd like to ask you a question. I'm Brazilian, resident abroad and I've already made both my definitive exit notification and my Definitive Exit Declaration, in 2013 and 2014 respectively. If I have changed my proxy, am I obliged to inform the IRS? Thank you kindly.
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Good evening Vinicius. First of all, congratulations on the content and the way you approached the subject, very complete.
In my case, a taxpayer worked for a large Brazilian company until Jan/21 and then went to work for the same company, only in Colombia. He didn't submit his exit notification until Feb/22 and in May/22, instead of submitting his Final Exit Declaration, he submitted his normal declaration as a resident.
Now, at the end of 2022, he will return to live and work in Brazil at the same company he used to work for in Brazil, which also operates in Colombia.
In this case, as far as I know, as there is no agreement to avoid double taxation between the countries, he will have to file a digital process with the IRS and ask to rectify the declaration submitted, changing it from normal to DSDP and being able to bring the amount received in Colombia and avoid taxation? -
Hello Vinicius, wonderful text. Very enlightening. Many of my doubts have already been clarified in the text. But I still have some. I've been living and working in Portugal since April 2022 and my entire residency process was based on my Italian citizenship.
In Brazil, I have a company classified as Simples Nacional and I already know that I will need to change it to Lucro presumido. I'm married, I have a daughter and they are my dependents on my tax return.
Would the issue of bank accounts in Brazil being closed also extend to my wife and daughter? They have open bank accounts.
If I don't do the DSDP, what would be the best way to avoid double taxation between Brazil and Portugal? I'm asking because my income in Brazil comes from my company and sometimes I send something here to Europe and my wife is self-employed and sometimes sends something here too. -
Hello Vinicius team, good morning!
I left the country in 2015 and in 2017 I submitted the definitive exit declaration and from then on the doubts began...... and I would be grateful if you could clarify some of them.
1- I didn't file an income tax return after that, because I was no longer a resident of Brazil, according to information received directly from the Federal Revenue Service - has this changed in recent years?
2- During this period my wife inherited a property and money that we didn't declare, this was also the information at the time, has this changed?
3- In 2020 the property was rented out and this rent is deposited in our old current account in Brazil, which has a Brazilian address. What should we do in this case? Amount received +/- 24 thousand reais in rent.
4- From what I've researched, do I need to open a non-resident account, Banco Rendimento for example, and close this Brazilian account - is that the right thing to do?
5- Or do I need to open an account in the name of my proxy and declare it in the name of the proxy, this doesn't seem right to me, but I found it on Google.
Thank you very much for your clarifications
Jeferson -
Congratulations on your post. I've been researching the subject out of personal interest and your information is by far the most comprehensive I've found.
However, one question remains: I filed my DSDP and started living in the United States and, with the earnings from my work there, I bought a house in the state of Florida, which became my residence. As a non-tax resident in Brazil, I haven't filed an IRPF return since then and I've never taken any financial resources from Brazil to the USA. In the end, in 2022 I sold my house there in preparation for my return to Brazil, which will take place in mid-2023. From the sale, I obtained a capital gain which I will account for to the IRS, which will not charge me any tax due to the fact that the house has been my primary residence for two of the last five years. My question: If I migrate with this money to Brazil when I move and become a resident again, will I be taxed by the RFB? -
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Good morning, Vinícius. Very enlightening text. Thank you for your contribution to the society of presidents outside Brazil.
I left Brazil permanently in November 2019 and filed my DSDP and final IRPF return.
However, I only notified my sources of private income in February 2020, so they were unable to collect the 25% of IR directly from the IRS.
As for the INSS, I made several attempts to communicate (I couldn't identify the correct cane, but I found on the INSS website that in June 2020, they stated that I had moved to the 25% rate, due to my departure in November 2019.
However, the INSS doesn't seem to have paid this tax and the IRS, because of these two problems, demanded that I make an adjustment declaration (which I did and paid another R$350.00 in tax).
What's more, I've been charged an absurd fine of more than R$19,000.00, considering that the tax relating to total income in 2020 is due and not just for the month of January, as mentioned above (although February to December have been duly paid).
Since I reported my permanent departure in January 2020, wouldn't my main source of income have to pay this January tax in any of the remaining 11 months of 2020? In other words, isn't she responsible?
She issued a 2020 Income Report, where she puts this January income as taxable.
Isn't this wrong, since she found out in January that I was leaving the country?
Can I hold her responsible?
And what about the INSS, which issued the 2020 and 2021 income reports as taxable income, even though its website acknowledges that I left permanently in 2019?
I've hired an accountant to file an appeal with the IRS, since I live in Portugal, but I'm afraid of the outcome.
Before hiring her, my son, my attorney-in-fact, made an appointment to go to the Receita with these doubts, but there they said they couldn't give any more information apart from saying what the pending issues were, that I should go to the Receita Federal website and file a complaint.
Even so, I filed my tax return and paid the IRPF due (?) and managed to get the CND I needed to sell a property in Brazil.
I didn't pay the fine.
The lack of communication between government agencies, the inoperability of face-to-face service and the difficulty of identifying how to resolve problems with these bodies has become a nightmare for those living outside the country.
I would ask for your advice on how to solve these problems, at least as regards the responsibility of my sources of income for paying the 25% of income tax.
It's worth noting that when I have to make an adjustment declaration, the program doesn't recognize that I've changed my tax rate and charges me 27.5% instead of 25%.Sincerely,
Paulo -
Hello Vinícius, good evening.
Congratulations on all the content published.
I left Brazil for Portugal in November 2018 to study.
I filed an IRPF return as if I hadn't had any income up to the current year because I didn't know if I was going to return it.
This year I've decided I'm not going back to Brazil.
I've had income in Portugal since 2021.
Can I do the DSDP retroactively to 2021 so that I don't have to pay tax on income earned in Portugal in 2021 and 2022?
Thank you very much,
Antonio
Antonio O
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Congratulations on the blog and for all your hard work in providing such comprehensive information.
I've been out of the country for more than 10 years and I've never made a declaration because I didn't know it was necessary.
When I heard about this last year, I asked several lawyers and accountants what I should do. I should point out that I have always been exempt in Brazil, since before I left more than 10 years ago.
I was advised to declare when I left, which was last year. The lawyer didn't recommend retroactively.
I still don't have any earnings in Brazil, but I've considered moving back there because my mother is ill. If I go back, I should file my tax return at the end of the year, correct? If so:
- should i declare all assets acquired abroad?
- these assets were acquired more than 10 years ago outside the country. I declared my departure last year. What considerations should I take into account? Will I be charged for what I did outside the country?Thank you very much in advance for your attention.
Dear
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Hello! I moved to the USA 7 years ago, 4 years as a student and 3 years currently working. I never had any income in Brazil or real estate, and I never paid tax there. I had no idea about this "definitive declaration of departure" thing!!! I pay normal income tax here in the US, and I'm going to visit my family at the end of the year and get my work visa for the US - will I have any problems when I arrive with income tax in Brazil??? The last time I was in Brazil was in 2018 :'(
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Good morning, Vinicius.
Congratulations on the content of your post.
I would just like some clarification. Is the appointment of a proxy a mandate for a non-tax resident who receives rent in Brazil, please?
I'm in the Netherlands and I'd like to keep control of my finances 🙂 (collecting my rent, paying my tax and so on).
Sincerely,
Vanessa Ribeiro -
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Hello, Vanessa! Thank you for your interest in our content.
I can't give you a concrete recommendation because I don't have access to all the information you need, but I can give you some general concepts that can help you make your decision.
Brazil and the United States of America do not have an agreement to avoid double taxation, so a person who maintains dual residence in these countries is subject to double taxation on the same income. Brazil recognizes the possibility of deducting US federal income tax from Brazilian tax, but not any state or municipal income tax. The decision on the advantages and disadvantages of this situation usually varies according to each person's personal characteristics.
As far as financial investments are concerned, once a tax exemption has been granted, it is possible for non-residents to invest in Brazil, but it is necessary to follow the rules and requirements applicable to non-resident investors. Unfortunately, regulation has made it impractical for smaller investors to keep their investments 100% regular.
The best strategy must be analyzed for each individual case, so I can't recommend a solution to you in a comment. Nevertheless, I hope my brief comments have helped. If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Fernanda! Thanks for the compliment and for your interest in our content.
Brazil and Ireland do not have an agreement to avoid double taxation and, to date, there is no reciprocal treatment between the countries, so you could be taxed on your income in both Ireland and Brazil. If you are moving to Ireland, it is usually best to file a Declaration of Permanent Departure (DSDP).
I would like to inform you that you can rectify your annual tax return so that it shows that you have been a non-resident since 2020. In this case, income from abroad after the date of tax withdrawal is not taxable in Brazil.
I hope I've helped you and if you need our support, you can contact us at WhatsApp or by e-mail contato@tersi.adv.br! -
Hello, Heron!
Thank you for your compliments and interest in our content. We believe that after the New Foreign Exchange Law (Law 14.286/2021) it will be possible to solve many of the problems with non-resident bank accounts.
In addition, Congress is currently debating Provisional Measure 1.137/2022, which we have been directly involved in, and which, if approved, will make it easier for non-residents to invest.
With regard to your daughter's situation, the IRS leaves it up to the person who declared their permanent departure to inform the sources of payment that they are no longer a tax resident in the country and, due to the duty of secrecy, they do not communicate this directly to financial institutions and brokers. If the bank is not informed of this change, it informs the RFB of your daughter's income as if she were still resident. Depending on the amounts and transactions involved, this could result in a pending CPF with a requirement to file an income tax return as a resident. In some cases, it can also lead to a block on her bank account, an issue that can be resolved with the tax authorities by explaining that she failed to deliver the letter.That said, the relevant legislation does not set a fine, and we are unaware of any cases in which a penalty has been imposed for failure to notify paying sources. The problems we are aware of only come from a mismatch of information.
I hope I've helped you and if you need our support, you can contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Scherduyck!
Thank you for your kind compliments on our work. The CSD indicates to the tax office that you have left the country definitively, but it does not exempt you from submitting the DSDP. Therefore, it is necessary to formalize the definitive exit by submitting the Definitive Exit Declaration, even if late, to avoid future problems.
The 5-year deadline is due to the fact that the program used to submit the DSDP is the same as that used for the Annual Adjustment Statement, so it is only possible to submit statements from up to 5 years ago.
The Receita Federal recently created an e-mail address for requests to update the CPF for those who left the country more than 5 years ago. You can find information about on this site. Another possibility is to submit a DSDP from the oldest year possible.
I hope I've helped. If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Danilo!
With CVM resolution 64, non-resident individual investors are exempt from having to register with the Securities and Exchange Commission. This represents a cost reduction for the investor, since they would not have to pay the CVM inspection fee.
However, there is still an obligation to appoint a legal representative of the investor before the CVM, and the latter is obliged to send the requested information in an electronic system made available by the CVM before the start of operations. This part of sending information about the operations themselves is the main reason for the high cost of opting for this system.
I have been personally involved in changing the scenario for non-resident investors. We recently proposed an amendment to Provisional Measure 1.137/2022 with the aim of changing the responsibility of the legal representative of the non-resident investor. The MP is currently awaiting a vote in the National Congress so that it can be converted into law.
I hope to bring you news on this subject soon.
If you need our support in this and other related matters, just contact us atWhatsApp or by e-mail contato@tersi.adv.br! -
Hello, Alexandre! Thanks for the compliment.
Very good question. We haven't found any clear guidance from the Receita on this, but it is possible today to request an update of the CPF data by e-mail, including the registration of the proxy. You can find government guidelines on this site.
In any case, if your current attorney-in-fact has to fill in a Dirf or carry out another transaction on behalf of your interests, all they have to do is inform you that the transaction is being carried out for a non-resident person and enter your details in the appropriate field.
If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!
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At the end of 2023, I'm going to take a three-year unpaid leave from my job, I'm a civil servant for the State of Goias, I wanted to continue contributing to my retirement here in Brazil. When the three years are up and I have to return, I don't know what will happen, whether I'll resign and continue abroad or return to Brazil (this is for the future). In my case, a priori, roughly speaking, what observations could you make?
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Good morning
I'm a resident of Switzerland with dual citizenship, and I received an inheritance on paper this year with my sister who lives in Brazil, I don't have a bank account in Brazil, nor do I do income tax, because I've never had assets in Brazil, I've been registered in Zurich for over 30 years at the Brazilian consulate, my CPF is regular, and I do my income tax here, now where do I need to declare it? and how? if I sell the objects?
Thank you very much -
Good evening Vinícius. This was certainly the best content I've found on the internet on the subject. Congratulations on your work. I will be transferred to the North American branch of my company in Jan/2023. I am already organizing myself to regenerate investments, close bank accounts, etc. My only problem is a real estate loan I have outstanding with CEF, which would require me to keep a bank account open in Brazil to send funds US->BRA until it is completely paid off. What do you recommend doing in this case? I believe that with the funds from my work in the USA I would be able to pay off the loan within the year 2023. Could not filing in January and waiting for the mortgage to be paid off be an option? Thank you very much and Happy New Year!
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I left Brazil in 1988, and I never did it and didn't even know about the DSDP. I didn't file a tax return in Brazil because I had no income. Now, due to my mother's death in 2022, I've started receiving part of my father's pension from the army, so I need to put everything in order.
My CPF is in order and my voter registration is ZZ (abroad), I vote at the consulate every presidential election.
My questions are:
How do I make my departure official with the effective date of 1988?
Or should I do the DSDP with the date 5 years ago? 2a) If this is the case, how should I proceed, since I have never declared IR in Brazil?
Reading your article I understood that I should open a CDE, but to do so I need to obtain the DSDP, or is there another way? -
Dr. Vinicios,
Without a doubt, your content is excellent and enlightening.
Congratulations!!!
My client filed his CSD and subsequently the DSDP in 2006 using manual processing, but did not inform his paying sources. In 2007 he received a summons and, as a result, the sources of payment proceeded to inform the SRF, as a resident. He settled the matter with the SRF, but on the advice of another accountant, in 2013 he started filing his IRPF until 2018, here in Brazil. In this case, has he lost his non-resident status? I've taken his registration information and it says that he's taxed in Brazil.
My question is: will he have to do the CSD and DSDP again? What about the income he acquired abroad? Will he have to report it?
Thank you for your analysis and help.
Thank you. -
Hello Vinicius Tersi,
I have been permanently resident abroad since 2016. My CSD is from May 2016 and the DSDP is from 2017 (fiscal year 2016). I hold a Domiciled Abroad Account with Santander (Brazil). I started receiving INSS benefits in February 2018, when I turned 65. I have tried several times to communicate the source of payment (INSS) at this link http://www.csdp.receita.fazenda.gov.br/csdp/index.xhtmlwhich does not recognize the request. I have been receiving a pension with a current monthly value equal to R$4,890.00, with the observation of deduction for beneficiaries over 65 (code 303), generating a low amount of IRRF (code 201) (R$93.00). I thought that everything was normal and that the INSS had routine access to the system. Recently, I checked the ecac portal for irregularities in submitting the DIRPF. The 2016 and 2017 statements (DSDP) are listed there as "processed". The 2018: "undelivered", 2019: "omitted from DIRPF", 2020 "undelivered", 2021 "undelivered" and 2022 "omitted from DIRF". How to regularize? Is there a difference between "not submitted" and "omitted from DIRF"? "Undelivered" would be correct, because I did CSD and DSDP. Recently, the Meu Inss app gave me the option of asking to report my permanent residence abroad. Should I submit this request now, informing the DSDP? I'm afraid my CPF will be canceled. What are the consequences of these inconsistencies?
Thank you very much for your attention -
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Hi Vinicius,
Thank you very much for your content!
I have a question...
Background: I left for good and lived in Australia for 7 years, last year I returned to Brazil thinking I would spend a few months, but now it's almost a year. During this period I made a few sales (less than 10k) of digital products that went into my account here in Brazil. Some of them were just before I came, and others when I was already here.
I'm planning to return to Australia permanently, I don't know when yet, but in total I'll be here in Brazil for more than 12 months.Question: What should I do about these receipts in Brazil? Do I need to cancel my permanent departure?
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Good morning!
I left Brazil for good in 2017 but, due to a lack of information, I ended up submitting annual income declarations normally between 2017 and 2021. I own a property and, because I receive rent, I thought I should continue to declare it. My question is: can I file a DSPS by rectifying more than one annual declaration, i.e. replacing my 2018 to 2021 declarations with DSPSs?
Thank you! -
Good afternoon Dr. Vinicius Tersi, congratulations on your work!
My son went to France in Feb/21, he filed his Declaration of Permanent Departure at the beginning of Apr/22 (within the deadline), so as long as he is a non-resident in the country, he won't have to file a tax return here in Brazil, am I right?
One more question: when I look at his CPF tax return, it shows REGULAR, is that normal, even though he has made the Declaration of Definitive Departure from the Country?Thank you in advance for your attention, I wish you all the best!
Edivaldo -
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Dear Dr. Vinicius
First of all, I'd like to thank you for the excellent content on the internet about doubts with the RFB.
I left Brazil in Nov/2022 and didn't file an exit tax return, but I did file all my income tax returns, including the 2023 Base Year 2022.
I intend to return to Brazil (vacation) in January/24 and stay there for 30 days and then return for 12 months to New Zealand because I've been living on the side here and I don't know if I'll be able to establish myself here. What do you recommend? Should I make a final exit declaration? -
Dr. Tersi, good evening!
Could you clarify: in the case answered below in this article, you mention only ITCMD as the tax to be paid. Wouldn't the IRPF also be due?
Hello, my sister-in-law left Brazil in 1986 and got married in Austria. She doesn't remember if she did the DSDP or the communication. She lives there as a married woman. It so happens that in 2021 she received an inheritance of 10% from her father's estate, which she donated to her mother. She also received a cash donation of R$ 50,000.00 which was transferred to her abroad.
VINICIUS TERSI
APRIL 12, 2022 AT 9:07 AM
Hello, Daniel!Thank you for contacting us. If your sister-in-law has been living abroad since 1986 and hasn't filed any tax returns in Brazil since then, I usually recommend formalizing her tax returns for at least the last 5 years, to minimize the chance of her situation being questioned with regard to income received from abroad. Non-residents do not file income tax returns, even if they have assets in Brazil, receive donations, etc. These donations are declared in accordance with state law, for the collection of ITCMD (gift and inheritance tax).
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Good help, but I would like to know something, I am a non-tax resident, I made my declaration of definitive departure from the country and took all my money that I had declared abroad; but now I want to bring part of my money to Brazil and open a bank account; my question is if I would have to pay any tax on the repatriation of the money??? Thank you for your reply
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Hi Vinicius, very informative article!
I have a question, I've been living in England since 2005 and I've never done the DSDB. While in Brazil, I filed my tax return as exempt. My income was very little. I recently lost my father, and his house will become mine. That's why I'm interested. My first step will be to register my CPF as a non-resident. I'm already doing that. On gov.br, my CPF is in order. After the update, is it still necessary to do the DSDB? Regarding the rent for the house I inherited, the rent will be very low, and in total, my annual income will be below the minimum required for exemption. Do I still qualify as exempt in this case? -
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Hi Vinicius, thanks for the article!
This is one of the best articles I've seen on the subject, if not the best.
I, like many Brazilians who leave the country without knowing the law thanks to the fact that we don't have any kind of education in schools about legislation, find myself unnecessarily in an irregular situation because I haven't submitted the communication or the exit declaration.I have a very specific question and I would be very grateful if you could help me with it, just as you have helped colleagues who have posted before me.
My question is about when the statute of limitations starts for income tax paid with carne leao.
An important detail is that this taxable event was not filled in on the carne leao, paid or even included in the income tax return for the following year (as this return was not even submitted to the IRS).Even after reading several articles and watching several videos, I couldn't find a precise answer.
After all, the countdown begins:
A) on the date the taxable event occurs (receipt of income)?
B) on the date on which the deadline for filling in/ submitting the carne leao form expires?
C) in the year following the taxable event, when the income tax return containing the data relating to the taxable event is sent?Note that it makes quite a difference whether it's option A/B or option C, because in option C the deadline would only start to run a year later.
In option C, if the taxable event is in 2020, the declaration should be submitted in 2021, so the counting would only start at the beginning of 2022. -
Good morning!
I discovered your website in one of my searches and found it very enlightening. I made my Final Exit Declaration in 2018 and notified the organization where I receive my pension when I moved to Germany. Since then, this agency has deducted tax at source under the "Resident Abroad" code, 25%. In Germany, my husband declares my income together with his. The thing is, I'm on vacation in Brazil and I found out two weeks ago, when I tried to transfer a small amount of money from there to Brazil, that my CPF was irregular. This is recent, as a month ago my CPF was in order. This situation is causing me enormous material and emotional damage. The fact is that, after a lot of research and even consulting the IRS, I discovered that they have been charging me for declarations since 2019. The organization I worked for is declaring the DIRF incorrectly and my income is shown on the annual income statement as "Taxable income". They knew from the start that there was an incompatibility between the DIRF and my non-resident status, but they still insisted on the error. They still don't know how to report the withholdings on the DIRF and are consulting the IRS and other bodies to rectify the DIRFs for these five years. So far, they have treated the situation with great disregard and disregard for me. I see that the way out is to hire a lawyer so that the situation can be regularized, since I'll be here in Brazil until November 23rd. Do you have a suggestion for this case or something that could help me resolve this situation? -
Congratulations Vinícius for the article and for your attention to all my questions. On the subject of permanently leaving Brazil, I have the following situation.
My daughter, who is currently 18 and has no income whatsoever, moved to Spain at the end of June 2023 to attend university in Seville. She is still my dependent, including for tax purposes, where I will keep her on my DAA, due in April 2024.
As she moved out in June 2023, I understand that she has until the end of February 2024 to notify us of her definitive departure from the country, correct? However, my question is about the Declaration of Final Departure from the Country (DSDP). As she is still my dependent, with no income whatsoever, and is listed on my DAA, she doesn't have to submit the DSDP, correct? Or does she have to submit the DSDP, even though she has no income, assets, debts, etc. to declare?
Thank you in advance for your attention.
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Excellent information. Congratulations on the content.
I left the country last year and communicated my definitive departure now in February, but it's not clear how I should communicate it to the sources of payment (banks I have accounts with) and also if I should communicate it to the company I worked for in 2023 (terminated employment) before moving to the United States. And one last question, is there a deadline for notifying the banks?
Thank you in advance!
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