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Hello, Higa!
Thank you very much for your interest in what we write. I can't give you a recommendation without analyzing the case further, but you should certainly file your annual tax return this year, including your assets in Brazil and Japan, as well as your income. As Japan has an agreement with Brazil to avoid double taxation, you can take advantage of the benefits, especially on the receipt of salaries.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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!
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!
Hello, Jacqueline!
Thank you for your interest in our content. Germany and Brazil are already part of a network of international treaties on the exchange of criminal and tax information, and have been exchanging information effectively since 2018. On the German side, we already have news of some inspections using information received from Brazil, but we don't yet have information about the opposite situation (the IRS fining people who have failed to declare income from Germany).
The tax office usually relies on the submission of tax returns ("normal" or final) to determine someone's tax status. And the Judiciary also uses this information as evidence, as I've explained in this text. My suggestion is that you go with the solution that is most coherent with the life situation you are experiencing, without exposing yourself to unnecessary risks.
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!
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!
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!
Hello, Wellington!
Thank you for your interest. To date, we don't have a treaty between Brazil and the UK to avoid double taxation. We only have a Federal Revenue Act which recognizes reciprocal treatment between the two countries (i.e. the possibility of offsetting UK income tax 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!
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!
Hello, Ricardo,
thank you for your interest in our content. In your daughter's case, it's a little difficult to give advice without understanding her interests here and abroad. In any case, if she didn't have enough income to be required to file a tax return in the years prior to the current one, she won't need to file a return. It's worth filing the final tax return for the year in which this tax exit actually took place (if it was in 2021, then it would be a case of filing the DSDP this year).
You don't have to submit your foreign income tax return to the RFB, unless you are being inspected and this document is used to prove a fact of interest to the Revenue. It's difficult to comment in a post on what hypothesis this could be without knowing the specific case. But you certainly don't have to do this when you file your tax returns.
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 very much for your interest. Brazilian rules don't allow you to deduct the value of the installments with the financing of the property from the rental tax. The value of the installments is added to the cost of acquiring the property in order to calculate the capital gain on the sale of the property in the future.
In your case, for rent, the condominium, IPTU and real estate agent's commission are basically deductible, as long as the burden is borne by you as the landlord. We know from the German Desk's experience that the taxation of the same rents in Germany allows for more generous deductions than this.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Ewerton!
Thank you very much for your interest. The legislation didn't provide for the situation of taxpayers who spontaneously collect the rental tax, because the law, when it was created (1940s), didn't even imagine this possibility. One possibility would be to collect the DARF forms from your CPF and submit this year's Dirf. In this case, there will be some fines for the delay. Legally, if the taxpayer fulfills the tax obligation of the person who was responsible (the attorney-in-fact), the obligation is extinguished in the same way.
I hope I've helped. We can provide support if you need it. Just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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!
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!
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!
Hello, Henrique!
Thank you for your interest in our content. If I understand you correctly, you mean that, as a tax resident in Brazil, you have a bank account abroad (in US dollars), and in it you received the money from the sale of an asset also held abroad (in the same currency). I also understood that this asset abroad, before being sold, had been acquired with funds that you had earned abroad.
If I got the description of the problem right, taxation is as a capital gain in foreign currency, from 15% to 22.5%, and the calculation is made on the capital gain in dollars. Any exchange rate variation from the dollar to the real between the date of purchase and the date of sale of the asset abroad is exempt in Brazil.
As for how to declare it, the sale is reported in the GCAP program and then imported into the income tax return. As for the declaration of assets, the bank account abroad is informed by the bank balance on December 31 of each year, with the value converted from dollars to reais at the purchase price on each base date (December 31 of each year). Any positive exchange rate variation on the account balance is exempt.
Assets abroad are stated at their original acquisition cost, converted from dollars to reais at the selling price. Once sold, it is simply written off.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Leonardo!
Thank you for your interest and your compliment. Your question is somewhat complex to recommend, precisely because the tax residency criterion adopted in Brazil is subjective. We have argued that it is possible for someone living abroad to maintain tax residency in Brazil even for periods of more than 12 months, as long as they keep a set of proofs of this situation (such as submitting their income tax returns, informing them of their assets and income in Brazil and abroad). So I don't think you'll have any problems.
Now, knowing whether this path is the most suitable or favorable for you really depends on a more detailed analysis, and is beyond the scope of a blog comment post. In any 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, Andressa!
Thank you for your interest. I have argued that the definitive exit notice (CSD) does not have the power to extend a person's tax residence for 12 months if it is not submitted on time. Therefore, what matters is the submission of the declaration of definitive departure from the country (DSDP). I deal with this issue explicitly in this text. So 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!
Hello, Isaac!
Thank you for your interest. It's very difficult to give a recommendation in a blog post without analyzing the specific situation. As I understand it, your sister-in-law has not formalized her permanent departure and has not declared income tax in Brazil. This means that her CPF is still that of a resident, but there is no other evidence against her. My suggestion is usually to first formalize the facts that happened by means of a retroactive definitive departure declaration, and also to formalize her status as a non-resident to the Navy, so that they can withhold the tax from her correctly. These two measures avoid problems with cross-checking data with the IRS and formalize the fact that she was not required to declare her assets and income abroad in Brazil.
When she returns to Brazil, she should reverse this situation and declare her assets and income from the date of her return to Brazil onwards.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Kadu!
Thank you very much for your interest in our work! Your question is a bit complex to answer and give a recommendation in a blog post. In any case, there is a relevant general point: events that occurred more than 5 years ago cannot be rectified, nor can the IRS want to charge tax on them; those years have "lapsed".
As for the rest, it's not clear to me whether you haven't submitted any declarations in the last five years, or whether you've submitted declarations without informing the Japanese side. There are different ways to regularize your situation, which depend on the context of your case and your objectives.
Anyway, I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
