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  • Michael
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    Good afternoon, Dr. Vinicius,
    I'm a foreigner and I worked in Brazil for 6 years. I'm going back to my country and doing the DSDP.
    I have an investment in a direct treasury. How can I keep it when my bank can cancel my bank account as a result of the DSDP?

    Michael
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    Thank you very much for the clarification!

    in reply to: MP 1.171/2023: radical change to tax investments abroad #6696
    Michael
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    Good afternoon Dr. Vinicius. First of all, congratulations for all the enlightening content on your site.

    What really worries me the most would be the repeal of the exemption on exchange rate fluctuations for investments originally in foreign currency - a radical and substantial change, especially for resident investors who have held this position for hedging reasons for a long time.

    - Would such a measure really have legal validity over the entire cumulative history of the investment? Wouldn't this be a RETROACTIVE measure and therefore unconstitutional? If the revocation of the exemption is somehow maintained in the PM, wouldn't it only have to apply to the exchange rate variation from 01/01/2024 onwards?

    - Is it possible to understand what the MP changes about the "triggers" in the timing of income tax on financial investments or taxable foreign exchange gains after 01/01/2024? To clarify: in the case of a simple appreciation of the dollar during a calendar year, without any disposal, is it possible to know in which situations the investor will be taxed, and in which situations, during a subsequent calendar year in the case of a simple devaluation of the dollar, will it be possible to compensate?

    Thanks for any clarifications!

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Hi, I'm Vinicius Tersi, a specialist in international tax law.

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