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Hello, Maria! I couldn't extract enough information from your comment to help you. Could you elaborate on the problem?
In any case, the IRS has created a way of updating CPF information via e-mail. You can find guidance on this service at this link.
If you'd prefer to speak to us directly, just call us onWhatsApp or by e-mail contato@tersi.adv.br!Hi, Jacqueline! What's up?
I will separate your questions into three distinct points to make them easier to answer and understand: (1) non-resident account; (2) international remittance; (3) purchase of property by a non-resident.
With regard to the first point, opening a non-resident account is now much more accessible than in the past,
When it comes to sending money to Brazil, the funds you transfer from your account abroad to your account in Brazil are not income, but assets, so only the IOF on the exchange transaction applies.
Finally, it is possible for non-residents to buy property in Brazil. We are currently working on this for a client. If you would like our support in this transaction, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!
Hello, Michele! Thank you for your interest in our content.
Income from financial investments has tax withheld at source by the paying financial institution itself, which is responsible for declaring this income to the RFB. As the bank informs the RFB of these operations, depending on the amounts and operations involved, the IRS considers that the individual is required to file an annual tax return.
In Brazil, the non-resident is not obliged to file an income tax return, so if the DSDP has been filed, the DAA is not due.
This cross-checking of information between the source of payment and the Receita Federal can lead to some headaches, such as your CPF being suspended or even your accounts being blocked, but in our experience these events can be circumvented.
If you want to avoid these problems, a good solution is to close your ordinary bank account and open a CDE account:
I hope I've helped. If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!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!
Hello, Soraia! Thank you for your interest in our content.
It is possible for non-residents to invest in Brazil. Unfortunately, regulatory problems have made it too expensive for smaller investors to maintain financial investments on a regular basis. If this is not a major obstacle for the investor, the procedure for opening a non-resident investor account involves appointing the financial institution (or intermediary institution) as the legal representative in the country before the CVM.
What's more, Brazil and Germany no longer have an agreement to avoid double taxation, so Germany will be able to tax the income from these financial investments, even in a situation of dual residence. We know that Germany allows income tax paid in Brazil to be used as a credit.
I hope I've helped. If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!
Hello, Marlene! Thank you for your interest in our content.
When a resident leaves Brazil permanently without submitting the Communication or Declaration of Permanent Departure, the legislation understands that they are considered resident for the first 12 months after leaving and non-resident from the 13th month onwards. However, if the person maintains an interest in Brazil, the tax authorities may consider that the person has the definitive intention of residing in the country, which attracts double tax residency. The submission of the DAA corroborates this understanding, since only tax residents in Brazil are obliged to submit an annual tax return.
So, if your friend has a property in Brazil, but is not a tax resident because she lives and resides abroad, only having the property as an investment, she should not file an income tax return, but try to correct the CPF information with the Receita Federal.
I hope I've helped. If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!
Hello, Bia! Thank you for your kind compliments and for your interest in our content.
The first point that needs to be made regarding your question is that the
These Central Bank rules are aimed specifically at financial institutions, as are the penalties for non-compliance. Although we are unaware of any penalties or fines that could be applied to the person holding the account in question, we would stress that the correct way is to notify the sources of payment, close the "normal" accounts and open the account for those domiciled abroad.
I hope I've helped. If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!
Hello, Felipe! Thanks for your interest in our content.
The information you have provided is too superficial for me to be able to give you a recommendation. In general terms, the criterion of tax residency in Brazil is subjective, so it is possible for a person to be tax resident in both Brazil and Canada, even if they have a greater presence in Canada than in Brazil.
As I don't have all the necessary information, I can't tell you the best solution for your case, so I suggest you contact us atWhatsApp or by e-mail contato@tersi.adv.br if you would like a specific recommendation. We'd be delighted to help you!
Hello, Junior! Thank you for your interest.
I can't give you concrete recommendations in a blog post, as the subject is complex and I don't have all the necessary data.
In general terms, Brazil has international collaboration and information exchange agreements, including with the United States of America, so that the cross-checking of bank account information has been a reality since 2014. The use of this information in fine mesh is apparently not yet done in Brazil, although it is a matter of technological implementation.
If you are a tax resident in Brazil and receive income from the USA, as a general rule you must report it on your tax return (up to 27.5%), and you can offset the federal income tax already paid in the USA in Brazil. If you have assets of more than USD 1 million abroad, you are also required to file a declaration of Brazilian capital abroad.
I hope I've helped. If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!
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!
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!
Hello, Edson!
Thank you for the compliment and for your interest in our content.
When you transfer money between one account and another held by the same person, there is no income tax, because you don't earn income when you move your own money. There is, however, an exchange tax (IOF). Depending on the amount to be transferred, the bank may ask for documentary proof of the origin of the money. These requirements are only for the purposes of exchange control by the Central Bank, and not necessarily for tax collection.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Samuel! Thank you for your compliments and your interest in our content.
It's very difficult to give a concrete recommendation in a blog post, but I'll try to answer some of the questions you've raised.
Firstly, I would like to inform you that it is possible to submit the Declaration of Final Departure from the Country (DSDP) up to 5 years late, which means that if your sister left the country in 2017 (when the DSDP should have been submitted in April 2018) it would still be possible to submit the declaration retroactively.
It's not clear from your story whether you continued to file your sister's income tax return in the years following her move, but if you did, you would need to file an amended return for each year to inform her of her non-resident status.
Once the DSDP has been submitted, the IRS provides a model letter to be sent to the sources of payment, which will contain the information that your sister has acquired non-resident status. As for rents, the rate for non-residents is 15% and the DARF must be paid monthly, under the CPF of the attorney or non-resident, with the presentation of the Dirf.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Carolina! Thank you for the compliment and for your interest in our content.
It is possible to submit the Declaration of Final Departure from the Country (DSDP) with a delay of up to 5 years, i.e. if you left the country in 2007, it would only be possible to submit the declaration retroactively if it related to the 2017 calendar year.
It's not clear from your account how far back you filed your income tax return, but if you filed the 2018 IRPF return (for the 2017 calendar year) you can file a rectifying return to inform your non-resident status.
This declaration is made in the same program as the income tax declaration and, for your protection, must be filed even if you have no income in the country, since filing it will prevent future taxation in Brazil of income earned abroad.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Jadiel! Thank you for the kind compliment and for your interest in our content.
I can't give you a concrete recommendation based solely on the information you've given me. For that I would have to know the country in which you currently reside, your overall income and your intentions for the future.
I will say, however, that all the strategies mentioned are possible, but they have different consequences that must be analyzed according to your expectations and plans, which prevents me from advising you through a comment on a blog post.
If you need our support, you can contact us atWhatsApp or by e-mail contato@tersi.adv.brThis is an opportunity for us to discuss all these points, taking into account your personal interests.
Hi, Josiane!
The taxation of non-residents in the case of private pensions is slightly different from that of residents. When the beneficiary of the VGBL is a non-resident, tax is withheld at the rate of 15% on the difference between the contributions and the final value of the benefit (capital gain), while the PGBL is taxed at the rate of 25% on the value of the redemption of the benefit.
I hope I've helped. If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!
Hello, Neila! Thank you for the kind compliment and for your interest in our content.
With regard to your questions, I don't have all the information I need to give you a direct answer, but I can give you a general idea:
1. Payment of the fine/tax will depend on whether you have filed returns in recent years, whether you need to rectify them and whether you need to inform the RFB of your income in the other country;
2. Rental income received by non-residents is taxed at the flat rate of 15%, there is no rate reduction for non-residents;
3. The impediment to operating a bank account depends on the paying sources informing you of your non-resident status. This is because the RFB has a duty of secrecy and does not communicate directly with the banks and other sources of payment of the non-resident.Despite the 12-month provision, I have argued that being absent from the country for 12 months gives rise to a presumption of loss of tax resident status in Brazil, but this legal presumption can be overturned by other evidence, such as the filing of income tax returns.
Although I've made some brief remarks due to limited space and information, I hope I've helped to clarify some of your doubts.
If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!Hello, Yessika!
From your account I was unable to extract the information necessary to inform you of the need to submit the declaration.Non-resident foreigners are not obliged to file an income tax return in Brazil. Instead, the INSS (or another source of payment) must withhold 25% of income tax at source. If your uncle is in this situation, but has not informed the source of payment of his non-resident status, it is possible that the RFB may incorrectly understand that he is obliged to file a tax return because of the cross-referencing of information about his retirement.
I hope I've helped. If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!
