Tax Information for Foreigners in Brazil Part 1
By Jose Santiago
Taxation of Individuals
In order to keep and maintain your CPF number valid, once it has been issued to you, you have to do an income tax declaration or a declaration of exempt every year (except the year you received the CPF). This will depend on your taxable income and other circumstances, based on them, currently; we have the two options of declaration:
1. Declaração de Imposto de Renda (Declaration of Income Tax)
If you earn R$12,696.00 or more per year. For a complete list of circumstances where one is obligated to do such declaration, please visit this Receita Federal page.
2. Declaração de Isento de Impostos (Declaration of Tax Exemption)
If you dont have income in Brazil or if it is less than R$ 12,696.00 per year. For a complete list of circumstances and requirements to do such declaration, please visit this Receita Federal page.
Such declarations can be made by your attorney, CPA, agent or by yourself via Internet on the website of Receita Federal at www.receita.fazenda.gov.br.
The Declaração de Imposto de Renda is usually done in March and April and the Declaração de Isento de Impostos, in October and November of every fiscal year.
Care is required when filling out the forms, as the information provided can have legal consequences. This article isnt intended to serve as legal advise on how to do it yourself, it is merely explanatory, please always consult a professional.
If you failed to file one of these declarations for the first year, your CPF will have a notation on your number and, if you dont do any of these declarations for the next two years the CPF will be suspended. In order to re-activate the CPF you will have to go to the nearest office of Receita Federal and justify why you did not do the declaration(s). If accepted, most likely, you will have to pay a fee and your CPF will be re-activated, but be warned, it is a big hassle to go over all of this, especially for those who do not speak Portuguese fluently.
Another important aspect is that if Receita Federal notices one person has made several applications, or even has multiple CPF registrations, all of them will be permanently revoked.
Part 2 next week...
Jose C. Santiago
Multinvest / Elite International
Licensed Attorney - Brazil
Licensed Real Estate Agent - USA
Phones: (55-11) 9348-5729 - São Paulo, Brazil
(800) 983-7060 - Miami, USA
Previous articles by Jose:
8 Reasons to Invest in Brazil's Real Estate
The Brazilian Resident Investor Program for Foreigners
Brazil: Annual Required Procedures to Keep Your CPF Number
Legal Aspects of Acquiring Real Estate in Brazil
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