Brazil: Annual Procedures to Keep Your CPF Number Valid
By Jose Santiago
Every person who holds a CPF number, regardless of whether they are living in Brazil or not, and was dispensed from presenting the regular Income Tax or "Declaracao Anual de Ajuste de Imposto de Renda" in April of this year is required to file a "Declaracao Anual de Isento" known as DAI. This is needed to keep the CPF number in good status, otherwise it can be suspended.
If you are a CPF holder and do not file any of the above declarations for two (2) consecutive years, your CPF will be suspended. For those who missed last years period for the DAI, their CPFs will be marked as "pending regularization". If that is your case, you can have it regularized by paying a fine and presenting some documents at any "Receita Federal" branch office. That can be done personally, although for non-Portuguese speakers, I do not recommend spending the day at a "Receita Federal" because it requires a lot of talking, so go with someone that speaks Portuguese. Nonetheless, the easiest way to solve this issue is having your CPA or your Attorney do that for you.
This year the deadline for the DAI began on September 1, 2006 and goes up to November 30, 2006. The Receita Federal published the new rules and the new cap for this years DAI. This is how it works:
If you are a CPF holder who did not have taxable income during the fiscal year of 2005 or did, but below the new cap of R$ 13,968.00 must file the DAI through the following ways -
Nonetheless, caref is required when filling out the forms, as the information provided has legal consequences. This article is not intended to serve as legal advice on how to do it yourself, it is merely explanatory, please always consult with a professional.
The Receita Federals website has more detailed information and instructions on how to file the DAI, but is presented in Portuguese; the sites address is: http://www.receita.fazenda.gov.br/PessoaFisica/Isentos/Orien tacoes/default.htm
Should you need additional information, please contact Receita Federal and/or your own CPA or Attorney.
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:
How to Hire a Lawyer in Brazil Part 3
How to Hire a Lawyer in Brazil Part 2
How to Hire a Lawyer in Brazil Part 1
Tax Information for Foreigners in Brazil Part 4
Tax Information for Foreigners in Brazil Part 3
Tax Information for Foreigners in Brazil Part 2
Tax Information for Foreigners in Brazil Part 1
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