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January 12th, 2022 at 9:19 pm in reply to: CDE account: Can people living outside Brazil have a current account? #7210MichaelParticipantJanuary 13, 2022 at 9:26 pm in reply to: CDE account: Can people living outside Brazil have a current account? #7213MichaelParticipantMay 14th, 2023 at 5:23 pm in reply to: MP 1.171/2023: radical change to tax investments abroad #6696MichaelParticipant::
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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