Income tax declaration

Hi coolalphaman,

Yes there are significant differences for expats filing their Declaração de Impostos de Renda Pessoa Física, and while you could in theory file online through the Receita Federal website these differences and the tax regulations you need to understand make this a very unwise thing for expats to even try. The chances of making errors that will get you into hot water with the RF are just too numerous.

First of all you have to know if their is a Bilateral Tax Treaty between your country of origin (in your case India) and Brazil. Then you have to understand clearly the provisions of that Treaty to determine what you need to declare, since in most cases expats must initially declare such assets as property, homes, etc., that they have back home. Not so much to be taxed upon, but to establish their existence and value with the Receita Federal since eventual sale will have tax implications here in Brazil.  You must also declare all foreign sourced income and if there is no Treaty in place you have no protection against double taxation. That does not necessarily mean to say you will be taxed in Brazil on that income, but over a specific amount you certainly will be, especially in absence of a Treaty.

Depending on the tax laws in your home country you likely will need to file an income tax return there and may even be required to declare your Brazil sourced income. This is obligatory for citizens of the USA and Canada for example.

The whole issue of income tax for expats in Brazil is so complicated and regulations change so frequently that it is imperative that you have your tax return prepared by an accountant who is highly experienced in expat tax returns. Regardless of what the service may cost it is small compared to trying to wade through the mountains of red-tape and fine print, filing by yourself and making a mistake that gets you fined or even worse.

Cheers,
James  Expat-blog Experts Team