Tax question for residents of Brazil

07/07/24    Was watching a video on new Tax in Thailand. They have similar new  laws on Tax now as Brazil. Here a question that was asked if you just use a credit or debit card and take cash out of a ATM. If you don't have a bank account is this taxed under Thailand my question is this the same for Brazil. One more thing I will add to the question is in Brazil you need a CPS and most Residences have them. The answer to the Thailand question was you will not be taxed on this type of income. Is this the same for Brazil? The  other new Tax Brazil has put into place is the 8 to 15 percent on all foreign type income. This will be something that need a answer. Since it a new Tax and how it affects Foreign income like SSI and Pension or Stock dividend and a Home or Property sale outside of Brazil.        -@NewBrazil

In principle, the global income of legal residents of Brazil is subject to income tax in Brazil, but thanks to the Brazilian Constitution's prohibition on double taxation, the effect on foreigners deriving their income from sources in their home countries where it is already taxed is usually small.  Having or not having a bank account isn't relevant to the tax liability, nor is having or not having a CPF:  bank accounts and CPFs make life in Brazil easier and potentially may make an expat more visible to the Receita Federal, but neither in itself triggers a taxable event.

My husband and I had a longer than usual meeting with our accountant this year because of the new law.  The accountant had already pulsed her own experts, and my husband, who is an attorney, had analyzed the law and the accompanying regulations as they stood in early 2024, so we were well prepared.  In spite of the scare headlines that certainly appeared frequently at the time, our conclusion was that only minor changes were required to the way we had been reporting on the "Patrimônio" side of the income tax declaration, and there were no changes to our actual taxes (which in our case average about 3% of total income) at all. 

As always, I stress that everyone's case is different, and every expat should consult their own Brazilian accountant annually, as much to keep from OVERpaying as to keep from underpaying.  This is especially true for one-time events, like the sale or real estate abroad.  My guess would be that if the sale is accounted for under the tax laws of the country where it takes place then Brazil wouldn't tax the proceeds, but that's only a guess.

Thany you for your response. Your explanation how you took the time to investigate taxes owed suggestions.

Good response @abthree. 

A follow up question - are all tax accountants in Brazil as competent as US tax accountants (not!)?

How do we find a competent one for tax filing in Brazil?

07/07/24 A follow up question - are all tax accountants in Brazil as competent as US tax accountants (not!)?
How do we find a competent one for tax filing in Brazil?   

    -@Pablo888

I imagine that they vary as widely in skills as their colleagues in the US do.

We found ours the usual Brazilian way for finding professionals of every kind:  we asked around among people we knew for recommendations.  In this case, we asked a real estate agent we knew, and she recommended her own accountant.  We met with her, and were impressed that she seemed competent, straightforward, and honest.  She has understood from the start my wish to pay everything that I legally owe but no more that I legally owe, and she has never once suggested any kind of tax evasion.  Whenever I've had a question about my return, she's had good answers that made sense.  She's filed seven times for us so far, and we've never had a question yet from either the RF or Banco do Brasil, which requires a copy of my Brazilian return every year.