Tax issues when leaving Brazil for good | Peters Associated Lawyers

TAX LAW AND DEFINITIVE DEPARTURE FROM BRAZIL

Tax Law and definitive Departure from Brazil

Are you already leaving or have you left Brazil for more than 12 months, due to work, study, business or other reasons?

Have you ever heard of tax residence and/or non-residence? Definitive exit declaration? Expatriate?

In case you fit this situation, the reading of this text is important, because it has to do with the Brazilian Tax Authorities.

The departure of Brazilian professionals

(athletes, liberal professionals, entrepreneurs, among others) commonly called “expatriation” has always existed and in recent years has become more common and present. When it comes to changing countries, these expatriates need to be prepared for a series of changes, including settling accounts with the Brazilian Tax Authorities.

With the concern of the change, adaptation in the new country, search for housing, school, transportation, financial institution, health insurance and other the Tax Authorities, both in Brazil and in the new country is left in the background.

Unfortunately, only when it is established in the new country, or even only when it returns to Brazil is that the fiscal problems appear, because there was not due attention to this. Without knowing it, the Brazilian taxpayer who has left the condition of tax resident, in most cases, continues to send an annual income tax return as if in Brazil he continued living, or in other cases does not send the return to income tax. Only when he returns to Brazil and brings his accumulated assets from abroad does he realize the headache he will have to regularize his situation.

To know if you are or may be in a “potential tax problem in Brazil” just meet any of the main requirements below (knowing that there are others):

You are or will be more than 12 months (1 year) out of Brazil, and during this time you have spent more than 184 days (successive or interspersed), regardless of whether: holidays, business, studies, work, etc..;
You, besides spending more than 12 months outside Brazil (according to the conditions of the previous paragraph) have a source of income abroad;
You continue to file an annual income tax return in Brazil, even if you have more than 12 months outside Brazil;
You live for more than 12 months outside of Brazil and have assets and rights that give you income in Brazil.

If any of the questions have been affirmative… unfortunately, you are having problems with the Brazilian tax authorities.

And, what to do in such a situation? We have consultative expertise in tax regularization services in Brazil with the IRS and we can assist you to:

If you are leaving Brazil: plan your tax exit;
If you are already out: analyze your situation and issue a diagnosis of it and present solutions, as well as perform them;
Assist in the maintenance of income and rights in Brazil while you are away, but with assets here;
Assist with the financial institutions and Central Bank of Brazil to send their resources from abroad to Brazil, as well as the reverse;
Among other services related to your fiscal situation.

Brazil: Tax Residence and Non Tax Residence

Every taxpayer of income tax in Brazil; that is, everyone who has a CPF – Social Security Number (regardless of age or nationality) may or may not be a tax resident with the Brazilian Tax Authorities. This condition is determinant so that the one who has income in Brazil and/or abroad, knows how to pay (if any) taxes in Brazil.

The conditions that determine whether the taxpayer is a tax resident or not in Brazil are:

Who is not permanently resident in Brazil;
Who permanently withdraws from the national territory, will be considered a non-resident on the date of departure, or after 12 consecutive months of absence have elapsed, in case he has not submitted the Communication of Definitive Departure from the Country.
Who, as a non-resident, joins Brazil to render services as an employee of a foreign government agency located in the country. Attention: The Brazilian individual who acquired the condition of non-resident in Brazil and returns to the country with definitive spirit will be considered resident on the date of arrival.
Who enters Brazil with a temporary visa and stays for up to 183 days, consecutive or not, in a period of up to 12 months; Attention: For the counting of this period, if, within a period of 12 months, the individual does not complete 184 days, consecutive or not, of permanence in Brazil, a new period of up to 12 months will be counted from the date of entry following that on which the previous counting began.
Who is temporarily absent from Brazil, from the day following that on which he completes 12 consecutive months of absence.

If the taxpayer does not meet the conditions described above, he is considered a non-resident tax payer and therefore required to prepare and submit / send the Definitive Exit Statement from Brazil. However, there are some administrative rites that have to be carried out, such as the Definitive Exit Communiqué and the Forwarding of Exits to Paying Sources.

We have the expertise to assist the whole process in the fulfillment of tax obligations aiming the taxpayer to meet regularly with the Federal Revenue of Brazil and keep its CPF active and regular.

We have the expertise to assist the entire process in the fulfillment of tax obligations, aiming at the taxpayer to be in regular contact with the Brazilian Tax Authorities and to keep his CPF active and regular.

STEUERRECHT UND ENDGÜLTIGE ABREISE AUS BRASILIEN

Verlässt du Brasilien bereits oder hast du Brasilien für mehr als 12 Monate verlassen, aus beruflichen, studienbedingten, geschäftlichen oder anderen Gründen?

Haben Sie schon einmal von einem Steuerwohnsitz und/oder einem Steuerausschluss gehört? Abschließende Ausgangsdeklaration? Expatriate?

Wenn Sie in diese Situation passen, ist die Lektüre dieses Textes wichtig, denn es hat mit den brasilianischen Steuerbehörden zu tun.

Der Austritt brasilianischer Profis (Athleten, Unternehmer, usw), die allgemein als “Expatriation” bezeichnet werden, hat immer existiert und ist in den letzten Jahren immer häufiger und aktueller geworden. Wenn es um den Länderwechsel geht, müssen diese Expatriates auf eine Reihe von Änderungen vorbereitet sein, einschließlich der Abrechnung mit den brasilianischen Steuerbehörden.

Mit dem Anliegen des Wandels, der Anpassung im neuen Land, der Suche nach Wohnraum, Schule, Transport, Finanzinstitut, Krankenversicherung und anderen, werden die Steuerbehörden sowohl in Brasilien als auch im neuen Land im Hintergrund gelassen.

Und leider nur, wenn es im neuen Land niedergelassen ist, oder sogar nur, wenn es nach Brasilien zurückkehrt, treten die fiskalischen Probleme auf, weil dies nicht gebührend berücksichtigt wurde. Ohne es zu wissen, sendet der brasilianische Steuerzahler, der den Status eines Steuerbewohners verlassen hat, in den meisten Fällen eine jährliche Einkommensteuererklärung, als ob er in Brasilien lebt, oder in anderen Fällen nicht die Erklärung zur Einkommensteuer sendet. Erst wenn er nach Brasilien zurückkehrt und sein angesammeltes Vermögen aus dem Ausland mitbringt, wird ihm klar, dass er Kopfschmerzen haben muss, um seine Situation zu regulieren.

Um herauszufinden, ob Sie in einem “potenziellen Steuerproblem in Brasilien” sind oder sein könnten, erfüllen Sie einfach eine der folgenden Hauptanforderungen (in dem Wissen, dass es andere gibt):

Du bist oder wirst mehr als 12 Monate (1 Jahr) von Brasilien entfernt sein, und während dieser Zeit hast du mehr als 184 Tage verbracht (aufeinanderfolgend oder verstreut), unabhängig davon, ob du spazieren gehst, geschäftlich, zum Studium, zur Arbeit, etc….;

Sie sind oder werden mehr als 12 Monate (1 Jahr) von Brasilien entfernt sein, und während dieser Zeit haben Sie mehr als 184 Tage (aufeinanderfolgend oder verstreut) verbracht, unabhängig davon, ob: Urlaub, Geschäft, Studium, Arbeit, usw….;

Sie haben neben Ihrem Aufenthalt von mehr als 12 Monaten außerhalb Brasiliens (gemäß den Bedingungen des vorherigen Absatzes) eine Einkommensquelle im Ausland;

Sie reichen weiterhin eine jährliche Einkommensteuererklärung in Brasilien ein, auch wenn Sie mehr als 12 Monate außerhalb Brasiliens haben;

Sie leben seit mehr als 12 Monaten außerhalb Brasiliens und haben Vermögenswerte und Rechte, die Ihnen in Brasilien ein Einkommen verschaffen.

Wenn eine der Fragen positiv war…. leider haben Sie Probleme mit den brasilianischen Steuerbehörden.

TAX LAW AND DEFINITIVE DEPARTURE FROM BRAZIL

Tax Law and definitive Departure from Brazil

STEUERRECHT UND ENDGÜLTIGE ABREISE AUS BRASILIEN

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