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Hello, Venceslau!
Thank you for your interest in our content. It is very complex to answer your questions, I usually provide a consultation to address these points. It's worth mentioning that if you remain a tax resident in Brazil, your income from working in the Middle East will be taxable at 27.5%. It's better to leave. Since 2022 we've had an agreement with the United Arab Emirates, which can bring extra benefits if that's the country you're in. It is possible to maintain a current account in Brazil to receive the rents, in the form of a CDE (the Central Bank will soon publish the rules for the New Foreign Exchange Law, which will come into force in 2023). Legally, it is possible for one member of the couple to be a tax resident in Brazil and the other not, but this is a situation that has not been well provided for by the IRS in the regulations.
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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!
Hello, Marcos!
Thank you for your interest. There is no joint CDE, simply because the Central Bank prohibits the CDE from being used as a means of carrying out operations in the interests of third parties (in this case, the spouse). That's why no bank offers it.
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Hello, Sued!
Thank you for your interest in our content. Your questions are too complex to answer in a post, a consultation would be more advisable. The MEI is incompatible with being a non-resident. If you want to resume your tax resident status in Brazil (which seems to have little support, for your sister's situation), then it would be preferable to formalize in such a way that there is no question about your sister's status as a non-resident in Brazil for the last 5 years. The agreement with Luxembourg is applicable, and may bring extra benefits, but this is an issue that deserves to be addressed in consultation, in order to better understand your sister's specific situation.
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Hello, M.L.!
Thank you for your interest. Non-residents are taxed differently on private pensions. As a rule, it is 25%, and in the case of the VGBL, the IRS has stated that it would be 15%, as it is more like insurance than a pension plan. It is possible to maintain a private pension even if you don't have an open bank account, as the rules for the account and the private pension are different.
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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!
Hello, Marcia!
Thank you for your interest. If you have been living and earning income abroad since 2017, without returning to Brazil, it would be preferable to formalize your tax exit by submitting your final exit declaration based on the 2017 calendar year, even if you pay a fine for the delay (approx. R$ 170). This is an opinion, not a recommendation, as it does not analyze the facts or documents of your case.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Eduardo!
Thank you for your question. It's the first time it's come up for me. The IRS maintains the understanding that, unless there is something expressly saying that the exemption applies generally, the income would be taxable at 15% (or 25% in the case of income from work, retirement and pension). In the case of the IRPF exemption for serious illness, this is provided for in art. 6, inc. XIV of the Law 7.713/1988. Article 6 states that the income of "natural persons" is exempt, without specifying whether they are tax residents in Brazil or not.
COSIT, an agency of the Federal Revenue Service, on the occasion of the Sol. COSIT Cons. 541/2017In its ruling on the matter, the Federal Court of Appeals ruled that the IRPF exemption for serious illness does NOT apply to residents or domiciled abroad, taking the view that Law 7.713/1988 as a whole only applies to individuals who are tax residents in Brazil (art. 1), even though art. 6 only mentions "individuals" in a more general way.
I believe it's possible to challenge this reasoning in the courts, but at least we already know what a tax auditor's view would be in this case.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Joaquim!
Thank you for your interest. I can't tell you exactly what to do on the Portuguese side (a professional from Portugal is better suited to help you), but we have had experience with some clients in Portugal who ask us for a document from the Receita Federal attesting to their tax resident status in Brazil in order to obtain benefits in Portugal, such as the Portuguese non-habitual resident (RNH) regime, or the Regressar Program. We have had difficulty obtaining this type of declaration from the IRS.
I don't know if I can help you in this specific case. It would have to be clearer what you need to do on the Portuguese side, so that you can be sure what procedure to carry out in Brazil. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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!
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!
Hello, Eduardo!
Thank you for your interest. The situation you are describing is entirely possible (to remain tax resident in Brazil during the 10 months you are in England, and then return to Brazil, without the future return to England necessarily characterizing a tax exit from Brazil).
In the case of your salary, you would be liable in Brazil for the carnê leão month by month, according to your income. What can be offset against foreign income tax in Brazil must always be the equivalent of income tax. Social security contributions are not income tax and therefore cannot be offset. It is possible to argue that they should be deductible from the gross salary, in order to tax the net salary, but this is not expressly provided for in the legislation. Brazilian rules only mention the deduction of official Brazilian social security contributions, not foreign ones. Therefore, the most conservative approach would be to consider gross salary, although it is possible to argue in favor of net salary.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Priscila!
Thank you for your interest. The Receita Federal website allows you to submit the Communication of Definitive Departure (CSD). This only refers to people who have left Brazil now, and not for a previous date (Oct/2018 or, according to the 12-month rule, Oct/2019). This is done by submitting the Declaration of Definitive Departure from the Country (DSDP) for the year in question, paying a fine for late submission.
I hope I've helped you. If you need our support, including to regularize your tax clearance, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, André!
Thank you for contacting us, and I apologize for the delay in replying (the number of posts was high). According to tax legislation, the tax exit is considered to have occurred on the day you left Brazilian territory (Sep/2021) or 12 months later (Sep/2022). Until the date of tax exit, income earned abroad is taxable in Brazil. The issue of the pandemic has raised some possibility of questioning the date of tax exit, but we don't have any statement from the Revenue Department or the Judiciary on the subject, it's just a thesis.
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!
Hello, Tania!
Thank you for your interest in our content. In this specific case, the biggest consequence after the tax exit on the Brazilian side would be the taxation of 25% of IRRF on INSS retirement income and Army pension. Regarding the bank account, BB doesn't accept foreign domiciled accounts (CDE). You could open one at another bank to receive your benefits. In 2023, it is expected that the New Foreign Exchange Law will change the account situation, and perhaps make it possible to keep the account with BB as normal.
After the tax exit, no income tax returns are filed, only withholding tax.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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!
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!
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!
Hello, Rodrigo!
Thank you for your question, it's a very good one. Yes, that's exactly what we consider to be correct in this case. As the capital gain is calculated in USD, then any exchange rate variation between USD and BRL is exempt. The GCAP program doesn't account for the exempt exchange variation, so it would be a case of doing it manually and reporting it as exempt income on the tax return, so that the change in equity from one year to the next is correctly justified.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello!
Thank you for your interest in our content. I have argued that missing the deadline for submitting the Final Exit Declaration cannot have the effect of making someone a tax resident in Brazil for another 12 months in a row. That's why I understand that you can submit the Declaration of Final Departure from the country to put the situation in order, as you have done. You are not IN SRF 208/2002 a penalty for failure to deliver the Final Exit Notice.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
