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Asset Repatriation: Learn how to have Tax Paid Back

Law that establishes a new deadline for repatriation is regulated

  According to Dr Jair Jaloreto, from the Jaloreto & Associados Office, the Brazilian government reopened the deadline for regularization of resources held and undeclared abroad. Law 13,428/17 was enacted at the end of March and amends Law 13,254/16, allowing taxpayers to adhere to the Special Regime for Exchange and Tax Regularization (RERCT).

  The repatriation program is in effect until July 31, 2017, in accordance with Normative Instruction No. 1704/2017 of the Federal Revenue Service. To be benefited, it is necessary to prove that the resources to be regularized have a lawful origin and declare the equity situation as of June 30, 2016, informing the assets, assets and rights existing in periods prior to that date.

"It will be the last chance  to regularize the situation  of undeclared capital abroad, fiscally and criminally,  with absolute legal certainty."
Lost opportunity cost of cash to beneficiaries = $0.00

  The program eliminates the punishment of crimes provided for in Law 13,254/16.

  To calculate taxes, it is necessary to convert the currency into Brazilian Real, according to the exchange rate of 06/30/2016 ($ 1 dollar = R$ 3.2098 and 1.00 Euro = BRL 3.5414)

  The total value of declared and regularized assets, whether repatriated or not, will be subject to Income Tax, by way of Capital Gain, at the rate of 15%. A fine of 135% or 20.25% of the total amount settled will apply to this tax.

  To join the new RERCT, between income tax and fine, the taxpayer must pay the State 35.25% of the regularized assets, considering the foreign currency exchange rate on 06/20/2016.

  In this new phase of the program, it is possible to complement or amend the Declaration that ended in 2016, provided that taxes and fines corresponding to the omission are collected under the new rule.

Roger Correa Balanço Patrimonial

  All the amount “lost” in taxes and fines was reimbursed to the family, since life insurance is an asset where the insureds death benefit is exempt, when paid through an insurance company. Insurance, even if the insurance was contracted abroad*

  *Consultation nº 41, of 3/13/2003, to the Ministry of Finance – Internal Revenue Service, SRRF/6a. Fiscal Region – Individual Income Tax).

> Life insurance is not subject to the insureds debts and is not considered an inheritance (Article 794 of the Civil Code).

> Life insurance cannot be pledged. Law No. 11,382/2006 adapted articles 649 and 650 of the CPC to the current economic reality, classifying life insurance as absolutely unseizable assets (article 649, item VI)

Roger Correa - Tabela de seguros
Roger Correa - tabela de preços

For more information, check the following laws:
Law 13,428, of March 30, 2017 | Law 13,254/16, amended by Law 13,428/17:
Law 13,254, of January 13, 2016
Normative Instruction 1704/2017 of the Federal Revenue

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