Hello all. This is my first post here in the forum. I'm actually an ex, ex-pat. A US citizen who lived in Rio for over a decade and have been back living full time in the US for 6 years. I have a Permanent Visa (RNE) which I would like to maintain, so I make sure to visit every two years which as far as I know is enough to maintain the validity of the visa. Unfortunately it's not that simple when it comes to money & taxes, which I'm guessing many of you on this forum probably know.
From the research I've done, a Brazilian citizen has two choices when they leave Brasil to live/work. They can file a declaration called "saída definitiva" relieving them of tax liability in Brasil. Or they continue to file in Brasil, but then they need to declare their foreign income as well. Either way, if they spend a certain amount of time outside the country they're considered to be "residente não fiscal".
I'm trying to find out what a Permanent Visa holder is supposed to do in a similar situation. My concern is that if I did the "saída definitiva..." it would jeopardize my visa. That said, I don't even know if a RNE holder can do a "saída definitiva ...".
I own an apartment in Brasil and declare the rental income on my Brazilian taxes. I also have some money invested in funds, etc and declare that. I do not, however, declare my US-based income on my Brazilian taxes (Note: I don't need to discuss my US tax responsibilities here, as those are clear).
I hope this made sense, and hopefully there's someone on her who might have experience/knowledge to share.
Thanks,
David
Saída definitiva do Brasil & maintaining RNE
An RNE holder can and suppose to do the "saida definitiva" if going out of the country for more than 12 months to relieve him of income taxes. Doing so does not affect the residency status.
There is a 2 step process to declare a "saida definitiva" to the Receita Federal (RFB) and that is:
1. Comunicação de Saída Definitiva (CSD). In your case submission has expired a long
time ago.
2. Declaração de Saída Definitiva do Pais. Can only be submitted within 5 years. In your
case, it also already expired.
So, you´re still supposed to be a non-resident after a 12month absence in Brazil. But you do have properties and declare your taxes annually; not having completed the "Declaração de Saída Definitiva do Pais" does make you liable for the taxes generated on Brazilian soil. One benefit is that your CPF is still active because you own a property in Brazil and your bank account also maintained by it.
Something is worrisome about not completing the "Declaração de Saída Definitiva do Pais." Brasil and the US has no tax agreement except the SS benefits. Because you´re a Brazilian tax resident they can require you to submit your US earnings and all real estate (amount in dollars) you acquired.
Please research what you can do and maybe consult a Brazilian lawyer if there´s a way
still to submit the "Declaração de Saída Definitiva do Pais."
Remember that the US and Brazil do exchange info on income and taxes since 2013. FATCA which is reporting of bank accounts if it exceeds 10,000USD even for a single day, since 2015.
robal
Thanks for your reply Robal, and all the info. I'm going to look into this more carefully and I'll report back if I still have some questions. Appreciate you taking the time to reply!
Best,
Scott
sdfrio wrote:Thanks for your reply Robal, and all the info. I'm going to look into this more carefully and I'll report back if I still have some questions. Appreciate you taking the time to reply!
Best,
Scott
Come back anytime. Glad we´re able to help!
robal
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