Foreign trusts and the Inheritance and Donations Tax in the state of São Paulo
By David Roberto R. Soares da Silva
In a recently published ruling, the São Paulo Treasury Department ruled for the first time about the Inheritance and Donations Tax (ITCMD) aspects related to foreign trusts, especially regarding its levy and taxable event.
Brazil: A new voluntary disclosure is coming
By David Roberto R. Soares da Silva
Exactly five years ago, the first foreign asset voluntary disclosure program in our history began in Brazil. Called the Special Regime for Currency and Tax Regularization (RERCT), it became known as ‘amnesty.’
Despite the precarious drafting of the law and threats from the Federal Revenue Service, the program successfully allowed the collection of almost BRL 170 billion in taxes and fines. In 2017, the Government reopened the RERCT, but with more modest results.
Well, maybe soon we will have a new “RERCT round 3” that reopens the opportunity for taxpayers to regularize assets abroad that have not been properly declared to the Brazilian authorities.
Acquiring Brazilian Residency for Tax Purposes
By David Roberto R. Soares da Silva
Like most countries, Brazil taxes individuals based on their residency rather than citizenship or other criteria. Therefore, determining a person’s residence in Brazil directly impacts that person’s tax treatment and tax reporting obligations.