Brazil Exit Tax

All you need to do is, by the next tax season, which is starting now, is to file your 2022 taxes if any is owed, and then declare you are leaving the Country for Good in the same form.

Get a tax preparer, they will guide you through. 

On that note, if I stay in Brazil more than 180 days but don't have residency yet, do I have to pay taxes? I'm legal because my application is waiting in MigrantWeb.

01/27/23  On that note, if I stay in Brazil more than 180 days but don't have residency yet, do I have to pay taxes? I'm legal because my application is waiting in MigrantWeb.
-@jasonlovesdogs

I realize that I must sound like a broken record by now, but the best solution is still to find a Brazilian tax accountant that you feel you can trust, review your full financial picture with that person, and follow his or her advice if it makes sense to you.

My opinion is that a person who's in Brazil legally for over 180 days has a  potential tax liability:  any cursory reading of the tax laws will lead you to that conclusion.  But the factors that turn a potential tax liability into an actual one are so particular to each individual that I wouldn't trust ANY layperson's personal experience, including mine, no matter how well-meaning the offer.  My reading of the advice that I see on the Brazilian sites of the Big Four international accounting firms seems to be that as far as they're concerned, expats have unlimited tax exposure in both Brazil and in their home countries.  That's almost certainly wrong (another opinion!), but none of them wants to be the next Arthur Anderson.  One thing that's certain if you follow that advice is that you'll never underpay your taxes anywhere.  Good for them, not so good for their clients.

@abthree good answer. Thanks

@abthree What is the tax year in Brazil? Just got my residency approved today by the way! I started the process in August. I just need for the decision to be officially published in the newspaper and them make an appointment to go pick up my card at PF. I have been here for 7 months.

Any idea why it has to be published in Diario da União?

On that note, if I stay in Brazil more than 180 days but don't have residency yet, do I have to pay taxes? I'm legal because my application is waiting in MigrantWeb.
-@jasonlovesdogs

You can actually do your own taxes, problem is.... can you read the online forms and make sense of it ?

if you are in and out, odds are you haven't generated any income while in transit, and if you haven't transferred funds, nor have a local checking account, or derive any dividends or rent money from Brazilian assets, then your net taxes out are just a bunch of zeros. 

For the sake of continuity, if you are going to be in and out, you will, after the first filling, to pull up the previous year tax code or receipt. So, even if means a bunch of zeros, then file year in and out until you are out of the system for good. 

01/28/23  @abthree What is the tax year in Brazil? Just got my residency approved today by the way! I started the process in August. I just need for the decision to be officially published in the newspaper and them make an appointment to go pick up my card at PF. I have been here for 7 months.
Any idea why it has to be published in Diario da União?
-@jasonlovesdogs

The tax year is the calendar year.  Taxes have to be filed by April 30 of the following year.  So if you arrived in Brazil in or after July 2022, you have nothing to do this year, and if you're required to file a Brazilian tax return, it won't be until early 2024.

All new laws, regulations, and decisions by federal agencies have to be published in the Diário Oficial da União to have legal effect; immigration decisions are definitely included.  It's the equivalent of the Federal Register in the US.

In 2022 I was in Brazil for 3 weeks in May. Then I came back in on June 28th and have been here ever since. Does that change anything?

Also, I have been renting Airbnb and using credit cards for everything else. But I have transferred some money into Brazil via Wise and withrawn money from my US account at ATMs for various needs since I've been here. Maybe up to $5000 total. Does that change anything?

Thanks

I doubt. You are in transit, with no legal residence.

The treshold for in country generated payroll deductible wage for filing is  R$ 1.903,99, per month. That would put your @ R$ 24,000 per year, or roughly under USD 5,000. per year.

And that is taxable wage.   

A transfer of USD 5,000 hardly makes it. 

Again, the only time I would consider filing taxes is when you are in here with a permanent domicile, and you would need then to use the previous year filing Receipt ID to post entries for the following year.

If you haven't done it by the previous filling year, then there is no reason to get you started now.  However, once you file, keeping it in sequence is paramount to avoid filing blues thereafter.

@sprealestatebroker Thanks. I'm retired. Do you know if retirement income from the US will be taxed as a permanent resident?

01/29/23 @sprealestatebroker Thanks. I'm retired. Do you know if retirement income from the US will be taxed as a permanent resident?
-@jasonlovesdogs

US retirement income is taxed in Brazil, although more lightly than it would otherwise be, because it was already taxed in the US.  Canadian retirement income is not taxed, thanks to the tax treaty between Canada and Brazil.