Personal income tax in Brazil

Residents of Brazil are taxed on their worldwide income. The source of income is determined by the place where the income payer is located (Brazil), irrespective of where (abroad) the work is performed. Resident taxpayers who receive income from non-Brazilian sources are subject to mandatory monthly tax payments on amounts not subject to withholdings.

How (forms/where to submit) do I declare and pay taxes monthly for income received abroad?

Is it correct that income p.a. up to BRL 21,453 is tax-free? And up to BRL 32,151 it is 7.5%?

What is the progressive tax rate on cash assets?

You got me mate....I'm just putting it off and hoping for the best .....I'm broke and make under taxable income here in Brazil.

But then you file for annual tax exempt (declaração anual de isento)?

I'm residing overbroad, I cant recall any info you're saying. First, because the government of Br has not open ties with the over broader living status.

Yes I must be honest I asked a bunch of expats I know who have all been living here over a year as Permanent , none of the people I spoke to knew about an obilgatory declaration of overseas finances and no one had done anything like this ....when I past Recieta the lady there seemed to think I was crazy too...although she was just a clerk.
I don't think you need to worry unless you are recieving substantial money from overseas in Brazil month to month.....

Remember that when filing for naturalization, a copy of delivery receipt of the last personal income tax return or annual tax exempt is mandatory.

Thanks for your notes in response of mine.
Ruth r

Oh wow, is that right? I haven't filed my 2015 taxes back home yet and was planning on putting in my application for naturalization soon. Does that mean I have to get that taken care of first?

I think he means the Brazilian tax return.....right?

Yes, the Brazilian tax return.

Ooh. I was under the impression that I didn't need to file anything  if I was under the threshold to pay Taxes. I guess i need to get my exemption filed right away.

Another question I have for anyone who may be able to help. I moved to Brazil in mid 2014 and got my permanency in Feb of 2015. So the only year I need to file BR taxes for right now is 2015, right? HAs anyone filed this on there own before? It looks I can do it online.

Tax year ends 31 Dec. The taxpayer is required to file his/her tax return by the 30 April of the year following the end of the taxable year (2015). There is no provision for an individual to obtain an extension of time for filing the return. Late filed returns are subject to penalty and interest. Any balance due with the annual tax return must be paid on 30 April.

I will be meeting with an accountant on Monday. I guess they may charge me a fee, but I didn't earn enough to be taxed so i hope it won't be much. Thanks for the response.

brazilfam :

I will be meeting with an accountant on Monday. I guess they may charge me a fee, but I didn't earn enough to be taxed so i hope it won't be much. Thanks for the response.

Please keep us updated how this turns out for you. Thanks.

Another requirement of the Brazilian Income Tax Return is an “Asset & Liabilities List”. Individuals must report the most important items of their net worth, such as houses, apartments, land, cars, boats, jewelry, paintings, checking accounts, savings accounts, investments, shares, etc., wherever the assets are located (Brazil and/or abroad).

brazilfam :

I will be meeting with an accountant on Monday. I guess they may charge me a fee, but I didn't earn enough to be taxed so i hope it won't be much. Thanks for the response.

Could you ask your accountant

1. whether there is a pure capital tax on cash assets in addition to the capital gains tax? How much is the rate for both?

2. if previously not declared cash assets can be introduced to Brazil as loans from a third-party foreign entity without any tax implication?

Yes I can ask for you. My guess is that there is no tax on capital assets that have already had taxes paid on them, just on gains. And I would be pretty surprised to find out that a person could get funds from overseas as a loan and not pay tax on them. That would mean that my company from the USA could loan me money here and then I could never pay it back, live on the money or buy property here and not pay tax.

A loan is a liability and I would be very surprised if it would be taxed. It is not your money, it is not an asset from your point of you. Yes, it is a possibility that you default on the loan but this should not be of concern to the tax authorities. If you buy property with the loan however, then you would be subject to property tax but if you use the money for your day to day expenses there cannot be any tax implications.

In Brazil you cannot be Capital gains taxed on Property you acquired before becoming a Permanent resident in Brazil...

Seriously though , how is the Brazilian government ever going to know what assets you have in your home country ?

Latest info - I have been n touch with an accountant and apparently the regulations have changed as of this year , it is now mandatory to file some kind of declaration no matter what your income ....I'll keep you posted

Ooops , sorry looks like I misunderstood the accountant , you only need to do a mandatory filing if you have a CPNJ , still waiting to hear what else she says , sorry
Actually the accountant is sorting out my wifes CPNJ and I decided to check out my status too.

On the flipside my portuguese is showing great improvement and when the tax comes back as clear I'm thinking of approaching the PF about citizenship in July

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