Gringoes.com: taxes / imposto

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notmargarine
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Joined: 09 March 2009
Location: Brazil
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Posts: 56

Topic: taxes / imposto
Posted: 18 July 2012 at 12:41

can anyone give insight to how taxes / imposto are paid at the end of the year for foreigners on VITEM-V work visa?

i couldn't open a bank account when i arrived. while the salary was received it wasn't through normal processing.

anyone have insight? i'm guessing the MTE or someone will want some proof, and probably money, and what not.

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tbird
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Joined: 15 June 2012
Location: Brazil
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Posts: 525

Posted: 18 July 2012 at 12:42

When you say that the salary wasn't paid through normal processing.. Did the company withhold any income tax on your behalf?

Edited by tbird - 18 July 2012 at 12:43

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notmargarine
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Posted: 18 July 2012 at 12:47

I don't believe so, no.

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tbird
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Location: Brazil
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Posted: 18 July 2012 at 13:07

I think that there is the issue of Receita Federal (your obligations as a tax payer) and MTE (how it impacts your visa OR renewal of visa). In terms of Receita Federal, you are of course supposed to pay your taxes, as you mention, but depending on whether your company has even registered you (signed your workbook), someone might get in a bit of trouble here

And it probably isn't you.

I don't know if the company also hasn't paid pay roll taxes. The payroll tax is about 80%. So if you make 10,000 Reais, the cost to the company is around 18,000. Big incentive to try to pay workers in cash. But it is a crime and the company will be punished severely if MTE and Receita Federal discover it.

I'm not sure what the requirements are to maintain your particular visa. If you are going to renew it later, i'd look into that. Otherwise it probably isn't important.

Edit: My post probably isn't helpful at all, but it really depends on the particulars of your case.

Edited by tbird - 18 July 2012 at 13:21

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Stephen2
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Posted: 18 July 2012 at 16:44

If you are on a work visa with a local contract, your payslip *should* show income tax (IR) deducted each month. If it doesn't something is wrong. The top rate is 27.5%. The 80% payroll taxes tbird is referring to are borne by the employer.

Early next year you have to file a return. You probably need an accountant unless you really want to learn how to do this. In Brazil you have to declare all your worldwide income - and assets (so they can watch for any strange unexplained increases in your assets). If you became resident in Brazil during the year you have to declare your assets on the date you became resident.

In my first year I got a refund of some tax from filing my tax return, which I had to wait a few months to receive.

One thing to be aware of - you are supposed to pay taxes each month on your other income (e.g. foreign income) if it's more than a certain amount (about 1000 reais I think). That's called Carne Leao. If you receive foreign income (or rental income etc) and declare it you probably won't get a refund from your tax return but you will owe more money.

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Visas and Documentation
Gringoes.com : Brazil : Visas and Documentation

Author	Message
notmargarine Groupie Joined: 09 March 2009 Location: Brazil Online Status: Offline Posts: 56	Topic: taxes / imposto Posted: 18 July 2012 at 12:41
	can anyone give insight to how taxes / imposto are paid at the end of the year for foreigners on VITEM-V work visa? i couldn't open a bank account when i arrived. while the salary was received it wasn't through normal processing. anyone have insight? i'm guessing the MTE or someone will want some proof, and probably money, and what not.
	Come aboard if your destination is oblivion — it should be our next stop.

	IP Logged

tbird Senior Member Joined: 15 June 2012 Location: Brazil Online Status: Offline Posts: 525	Posted: 18 July 2012 at 12:42
	When you say that the salary wasn't paid through normal processing.. Did the company withhold any income tax on your behalf? Edited by tbird - 18 July 2012 at 12:43
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notmargarine Groupie Joined: 09 March 2009 Location: Brazil Online Status: Offline Posts: 56	Posted: 18 July 2012 at 12:47
	I don't believe so, no.
	Come aboard if your destination is oblivion — it should be our next stop.
	IP Logged

tbird Senior Member Joined: 15 June 2012 Location: Brazil Online Status: Offline Posts: 525	Posted: 18 July 2012 at 13:07
	I think that there is the issue of Receita Federal (your obligations as a tax payer) and MTE (how it impacts your visa OR renewal of visa). In terms of Receita Federal, you are of course supposed to pay your taxes, as you mention, but depending on whether your company has even registered you (signed your workbook), someone might get in a bit of trouble here And it probably isn't you. I don't know if the company also hasn't paid pay roll taxes. The payroll tax is about 80%. So if you make 10,000 Reais, the cost to the company is around 18,000. Big incentive to try to pay workers in cash. But it is a crime and the company will be punished severely if MTE and Receita Federal discover it. I'm not sure what the requirements are to maintain your particular visa. If you are going to renew it later, i'd look into that. Otherwise it probably isn't important. Edit: My post probably isn't helpful at all, but it really depends on the particulars of your case. Edited by tbird - 18 July 2012 at 13:21
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Stephen2 Groupie Joined: 07 November 2011 Online Status: Offline Posts: 86	Posted: 18 July 2012 at 16:44
	If you are on a work visa with a local contract, your payslip should show income tax (IR) deducted each month. If it doesn't something is wrong. The top rate is 27.5%. The 80% payroll taxes tbird is referring to are borne by the employer. Early next year you have to file a return. You probably need an accountant unless you really want to learn how to do this. In Brazil you have to declare all your worldwide income - and assets (so they can watch for any strange unexplained increases in your assets). If you became resident in Brazil during the year you have to declare your assets on the date you became resident. In my first year I got a refund of some tax from filing my tax return, which I had to wait a few months to receive. One thing to be aware of - you are supposed to pay taxes each month on your other income (e.g. foreign income) if it's more than a certain amount (about 1000 reais I think). That's called Carne Leao. If you receive foreign income (or rental income etc) and declare it you probably won't get a refund from your tax return but you will owe more money.
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