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Hi, Rick!
Thank you for your interest in our work. According to the law, there is nothing to stop you from keeping your investments in fixed or variable income in Brazil. The main difficulty comes from the lack of coordination between the Internal Revenue Service and the Central Bank in regulating this matter. We have been personally involved in trying to change this.
Basically, the IRS has defined a general regime for maintaining investments without much change from what you know. On the Central Bank's side, however, there are some controls on bank accounts and regulations on financial investments that mean that those who leave permanently are in an irregular situation (unless they manage to opt for the special "Investor 4373" regime, which has a very high cost).
You don't have to expatriate all of your capital, but you do encounter some difficulties, which I'll talk about below in this text. With the New Foreign Exchange Law, we have a window for the Central Bank to solve this problem once and for all from 2023.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hi, Juliana!
Thank you for your interest in our work. The Brazilian criterion for defining someone's tax situation is subjective by nature, so it's possible to interpret your context in two ways. A blog post doesn't allow you to analyze it in detail. But in general, you wouldn't have any trouble keeping an unpaid leave of absence once you've left. The bigger question is when the license expires. If you are a non-resident and continue to work (for example, remotely), you will have to inform the agency so that they can withhold the 25% tax correctly. If you return to Brazil to resume work, I don't think you'll have any difficulties.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Suzana!
Thank you for your interest in our content. The Internal Revenue Service's assessment of the matter is not automatic. I argue that the law has created a relative presumption, that is to say, that the law presumes that a person who is absent from Brazil for 12 consecutive months no longer has a definitive intention and therefore ceases to be a tax resident. When it says "relative", it means that the presumption admits proof to the contrary, such as the filing of income tax returns. This understanding is consistent with the stance adopted by Carf in 2020, in the judgment of the "Leandro de Aguiar" 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, Isaac!
Thank you for your interest. Yes, it is necessary to physically return to Brazil. When we look at the Receita's regulations, it says that Brazilians who "have acquired the status of non-resident in Brazil and return to the country with definitive intent on the date of arrival" reacquire the status of tax resident in Brazil. So you need to have a date of arrival in Brazil for this to happen.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hi, Leandro!
Thank you for your interest in our content. As the Brazilian criterion for defining someone's tax residence is subjective, it is possible to interpret your and your wife's situation in different ways. It's not possible to analyze in a blog post which would be better. More generally, I can say that as long as your wife remains a tax resident in Brazil, there isn't much change from what you already know. After leaving, it will probably be necessary to migrate the company from Simples to Lucro Presumido (if the company is currently opting for Simples).
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. Your situation is indeed somewhat complex, and possibly a case of double tax residence. It's still possible to correct your permanent departure, if that's the case. But the important thing would be to be able to understand your situation in more detail, which goes beyond the limits of this post.
This is a case where I suggest a consultation. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Marcio!
Thank you for your interest in our content. I don't see any risk in you making a textual reference to the Brazil-Mexico agreement in your statement. We have acted in a similar way in the work we do. Today we have two groups, Tersi Advocacia (which deals with estate planning and is made up of lawyers) and Tersi Contabilidade Internacional (which deals with compliance, for example with declarations, and is made up of accountants). Unfortunately, OAB rules prohibit us from publishing topics that are not related to the legal profession on our website.
In any case, if you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Francisco!
Thank you for your interest in our content (and for the compliment). I believe that your own account makes it clear that your intention to move to Spain is now temporary. And in this context, it makes sense for you to maintain tax residency in Brazil, even if you live in Spain for a year or more. Brazil and Spain have an agreement to avoid double taxation, which I believe is interesting for you, especially if you stay in Spain long enough to have to declare income tax there too.
From a financial point of view, there should be no change in the tax burden when it comes to financial investments, but today's regulations are unfavorable to maintaining regular investments. We have been working to try to change this unfortunate reality. Regarding the INSS and private pensions, the IR rate on redemptions changes to 25%, as a rule, which is usually unfavorable. I believe that these would be two more elements to justify not giving the tax exit in a case like 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, Debora!
Thank you for your interest in our work. To add to one of your points, there is no obligation to report international remittances on the assets and rights sheet, only the account balance on each relevant date.
On the question of the foreign domiciled account (CDE), your description is correct. The IRS regulations, as far as we know, have nothing to do with bank accounts. Therefore, for the RFB, it doesn't matter what type of bank account you hold. The source of the difficulties comes from the Central Bank's regulations, which are expected to change by 2023, due to the entry into force of the New Foreign Exchange Law.
My comment to Jamil was that the obligation to close a bank account and open a CDE exists, but the Central Bank's forecast was on the bank's side, not the customer's. We didn't find a penalty for keeping the account as it is. There is no penalty for keeping the account as it is. But at the same time, keeping the account as it is means that the bank/brokerage will continue to send the RFB incorrect information about the financial investments linked to the account, as if the person were a tax resident in Brazil. This is where the CPF problems arise, whenever the IRS system considers that an income tax return should have been filed (which only arises because the IRS received the wrong information).
I hope I've clarified things for you. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Milena!
Thank you for your interest in our content. If your question is only about opening an account, it would be to open a CDE. The banks that, in our experience, currently offer the best value for money are Santander and Banco Rendimento. The Declaration of Definitive Exit is one of the documents required to open an account.
Regarding the donation, ITCMD taxation is the same, so you shouldn't have any special aspects to deal with.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Luis Miguel!
Thank you for your interest in our content. From your description, I understand that you live in Brazil and work remotely for a company in Costa Rica. If this is indeed the case, and your situation is not just for a few days, but on a permanent basis, then yes, you are liable to pay income tax in Brazil on the employment income received abroad.
Brazil does not have an agreement with Costa Rica to avoid double taxation, and from a quick search, it seems that Costa Rica does not allow you to offset Brazilian tax, so there would be no reciprocity. You would need to be sure how Costa Rica views your situation (salary remuneration seems to be taxed less for non-residents there). From the little I've researched about Costa Rica's rules, to find out how this would be viewed by Brazil, everything indicates that there would be double taxation in your case, yes, unfortunately.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Ney!
Thank you for your interest and your compliment. Brazilian rules should allow you to formalize your situation as a non-resident and make the financial investments you want. The practical difficulty today is that the regulations in your case are inadequate. We've been making an effort to talk to the Revenue Service, the Central Bank and the Ministry of Economy so that this can be resolved once and for all.
One possible situation would be to take advantage of the benefits of the Brazil-Japan agreement in situations of dual tax residence, but you need to know your reality to be sure if this applies to you.
I hope I've helped. This is a case where it would be best for you to make an appointment. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Ricardo!
Thank you for your confidence in our work. We have assisted clients moving to Portugal, and the combination of Portuguese local rules and the Brazil-Portugal agreement is very favorable, including in cases of double tax residence.
We're happy to make an appointment, either now or when you've made a more concrete decision. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Carla!
Thank you for your interest in our content. I have argued that missing the deadline for submitting the Notice of Final Exit cannot have the effect of making you 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 (April 29) 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, Polliana!
Thank you for your interest in our content. I have argued that missing the deadline for submitting the Notice of Final Exit cannot have the effect of making you 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 (April 29) to get your situation in order.
Regarding international remittances, there is no explicit obligation to report them on your tax return, but rather the balances in your bank accounts on December 31st of each year (or on the date of the tax withdrawal, when this occurs on another day). At least considering the points in your post, you may be able to resolve your situation.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Rafael!
Thank you for your interest. You are using the same program. Instead of opening the old declaration, you'll need to create a new one, choosing the format of declaration of definitive departure from the country (DSDP). On the first tab, you indicate that it is a rectifying declaration, and enter the number of the delivery receipt of the annual adjustment declaration (DAA) that you want to correct.
This obliges you to fill in all the data again, but it is the only opening that the Receita program allows to carry out this procedure.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Ana!
Thank you for your interest. With regard to your first question, 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 (April 29) to get your situation in order.
Regarding the choice of exit date, the legislation does not provide for choosing the most convenient date. It does provide for the tax exit date to be 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.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Vilmar!
Thank you for your interest in our content. If the fighter is a tax resident in Brazil, as a general rule it will be taxable income. In this case, the US federal income tax can be offset as a credit. The income tax return program itself does this (with the amounts already converted to reais). I've covered how to do this conversion in this text.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
