Brazil Publishes New Rules for Taxpayers Exiting the Country
Brazil Publishes New Rules for Taxpayers Exiting the Country
Individuals residing in Brazil who leave Brazil’s national territory will have to complete and submit, in addition to the Final Income Tax Return (Declaração de Saída Definitiva do País), a Notice of Definitive Exit from the Country (Comunicação de Saída Definitiva do País).
This rule change is in accordance with the SRF Normative Instruction 208, of September 27, 2002, which was amended by the RFB Normative Instruction 1008 of February 9, 20101, published in the Official Gazette of the Union (Diário Oficial da União) on February 10, 2010. It became effective on February 10, 2010.
Under this new rule, taxpayers who leave Brazil in a definitive manner or become nonresidents of Brazil, must now submit the Notice of Definitive Exit from the Country as well as the Final Income Tax Return regarding the Definitive Exit from the Country.
Individuals who leave Brazil in 2010 (and after February 10), must file the Final Income Tax Return after March 1, 2011, and no later than April 30, 2011; and the Notice of Definitive Exit must be filed on the actual date of departure from the country or, in the case of a departure of a temporary nature, between the date the individual becomes a nonresident, up to the last day of February of the subsequent calendar year.
If the taxpayers’ dependents – enrolled on the Individual Taxpayer’s register (CPF) – leave Brazil’s national territory on the same date as the taxpayer, they should be included in the Notice of Definitive Exit filing. In cases where the dependents leave the country after the taxpayer’s departure, a separate Notice of Definitive Exit from the Country should be prepared for the dependents.
This Notice must be completed and submitted between the date of the definitive exit from the country up to the last day of February of the subsequent calendar year or, in the case of a departure of a temporary nature, between the date the taxpayer becomes a nonresident up to the last day of February of the subsequent calendar year.
Filing the Notice of Definitive Exit is a mandatory process, and it will trigger the issuance of a Receipt of Delivery of Notice of Definitive Exit from the Brazilian tax authorities (Recibo de entrega da Comunicação de Saída Definitiva do País), which will be immediately sent to the taxpayer. Only upon the issuance of the Receipt of Delivery of Notice of Definitive Exit will the taxpayer be able to continue with the process of leaving the country (e.g., file the Final Income Return).
Source: KPMG
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