Tax-filing obligations tied to CPF

Any person who earns a (Brazilian sourced) salary LESS THAN R$24.556,65 and has not acquired real property during the year does not file a Declaração de Imposto de Renda Pessoa Fisica (DIRF). They are exempt from tax.

So, the information your received was incorrect.

William James Woodward, Expat-blog Experts Team

Thanks, William. The person who told me is a Brasilian who is now a pensioner, and it made sense that I'd have to file, if only to prove that I didn't owe taxes. But I stand corrected. Thanks for your prompt reply.

How do I get a CPF

I got a viper and a marriage certificate but now struggling to get the CIE due to a missing form
can I get it without the CIE

Seems like I can from what I've read so far

You can get your CPF directly from the Receita Federal, or from Correios or Caixa Econômica Federal. You really only need your passport as ID in order to apply.

Cheers,
James     Expat-blog Experts Team

I saw in another forum to finish getting the CPF he had to take it to the minister de fazenda. If I get it the Correios is there still a second step?

I had to go to the Recita federal to justify not voting

Seems wierd I know but thats a Procedure , Recita Federal is like the Brazilian version of an IRS branch

Apparently it's normal to do this

Yes, stupid as it seems one of the things you need to get a CPF is a Voter's Card (Titulo Eleitoral). Of course since expats can't vote, they don't get a Voter's Card, but you still have to go to the Receita Federal to finish the CPF process, to show them your passport or CIE and tell them, "Hey idiot, I'm a Gringo.... we can't vote!!!" Then they issue your CPF.

Gotta love Brazil.

Cheers,
James    Expat-blog Experts Team

If you earn income for outside Brazil do you need to pay taxes. I have income from the USA and pay taxes in the US. I just thinking about moving to Brazil. I do have CPF number but do not live in Brazil at this time. Thanks

All citizens and permanent residents of Brazil who earn over R$26.816,55; or non-taxable amounts in excess of R$40.000,00 (2015 figures) must file a Declaração de Imposto de Renda Pessoa Física - DIRPF.

You are required to report your foreign sourced income as "world income", just as you are in many other countries including the USA.

You are also required to file a DIRPF in the year which you become a resident of Brazil, regardless of the amount of your income.

There is no bilateral Tax Treaty between the USA and Brazil, so really the only protection you would have against double taxation would be that which the IRS may provide you. This becomes a very important issue when you are talking about retirement pensions.

In my personal situation, for example, there is a Tax Treaty between Canada and Brazil. It states clearly that pension benefits payed by either country are taxable only in the country which pays them UNLESS the receiver has naturalized in which case they become taxable in the country of naturalization. So my CPP benefits are only taxable in Canada, since I have not naturalized. I have not got sufficient Brazilian income to require me to file a DIRPF (even if I had to report my pension). So I pay no income tax in Brazil. My CPP is below the basic personal exemption in Canada, so I get a refund of every cent that has been withheld in taxes. That would not likely be the case if my pension was taxable here.

Unfortunately you would not have such protection without a Treaty.

Cheers,
James     Expat-blog Experts Team

All citizens and permanent residents of Brazil who earn over R$26.816,55; or non-taxable amounts in excess of R$40.000,00 (2015 figures) must file a Declaração de Imposto de Renda Pessoa Física - DIRPF.

Does this apply if the permanent (sic) resident spends less than 183 days in Brazil annually?

PS - and has no Brazilian-sourced income and/or falls below the R$26.816.55 threshhold?

Hi SrGrumpy,

If you have a VIPER (i.e. Permanência Definitiva) the 183 day rule doesn't even apply. If you enter Brazil with a VIPER, in fact, you are taxable right from day one.

Provided that your total "worldwide" income falls below R$26.816,55 threshold and you have not purchased a home during the year you would not need to file a DIRPF.

If you purchase a home, regardless of your income for the year, it is required to file a DIRPF to report the purchase and thus establish its purchase value to be used as the basis for a capital gains tax in the future when and if the home is sold.

Just like in the USA and Canada, in Brazil you are required to report all income from foreign sources; and since there is presently no bilateral Tax Treaty between the USA and Brazil there is no protection against double taxation, apart from that which the USA gives you.

Once upon a time... all taxpayers had to file an annual Declaração de Isento, stating that you had earned less than the tax threshold. Fortunately that went the way of the Dodo bird several years ago.

Cheers,
James
expat.com Experts Team

Thanks. That's the answer I'd feared. I was planning to get a marital ViPer in the event of some modest work opportunities arising in Brazil later this year, but I'm not sure it's worth the effort.

PS I think you have written elsewhere that tax collection is the one area where the Brazilian government excels itself (at least as far as taxing the common folk), so I assume it's risky to avoid the paperwork process.

Yes, the Receita Federal is ruthless in their ongoing efforts to collect taxes due them. They even have a fleet of helicopters that they use to fly over costal resort areas filming residences for activities, construction, vehicles, etc., that would indicate one is living above their declared income. They catch a lot of tax evaders exactly that way.

Not uncommon for a government where they themselves are so corrupt and steal so much, that they hate the competition and go to the wall if you steal one centavo from them in the way of unpaid taxes.

Cheers,
James
expat.com Experts Team

If I understand correctly, with a pension income of US$36,000 I will pay 27.5% annual income tax in Brazil, correct?  On top of whatever income taxes I pay for this pension in the U.S..

travelr64 wrote:

If I understand correctly, with a pension income of US$36,000 I will pay 27.5% annual income tax in Brazil, correct?  On top of whatever income taxes I pay for this pension in the U.S..

Yes, since there is no bilateral Tax Treaty between the USA and Brazil, you will pay on a progressive scale up to 27.5% on you income. However, you won't pay that on the whole income, you pay the lesser percentages on the amount of income in each increment. Also there are two scales in effect for the 2015 tax year, one from January to March, and the other from April to December. It's extremely complicated and certainly filing a DIRF in Brasil IS NOT something you should undertake on your own. You certainly should use an accountancy firm experienced in processing tax returns for expats.

You should also prepare your Brazilian DIRF before you file your 1040 with the IRS since you may qualify for a tax deduction on the taxes you've paid in Brazil. (That is not to say that you necessarily need to have paid them first, just that you calculate exactly what you will pay.) Since I'm not a US citizen I can't tell you exactly what or how much those deductions would be, but there are certain provisions in the Income Tax Act for this eventuality.

For the tax tables (based on montly income in R$) see:  http://idg.receita.fazenda.gov.br/acess … soa-fisica

Every time I get this question from a US citizen I thank God that I'm a Canadian and have not naturalized. My Canadian Pension Plan benefits are not taxable in Brazil due to provisions of the Bilateral Canada/Brazil Tax Treaty unless I naturalize. Given that my gross income does not exceed the basic personal exemption, while taxes are deducted at the source, I get every cent back when I file my T1-General in Canada each year.

Cheers,
James
expat.com Experts Team

James , do you use a professional accounting firm for your taxes as an expat?

No because I do not file taxes in Brazil. I prepare my own Canada T1-General Income Tax Return and haven't Brazilian income sufficient to require me to file here.

That said, if I earned enough to require me to file in Brazil I wouldn't dream of trying to prepare my own taxes; too many rules, they add hundreds of new ones each month, and filing is way too complicated.

Cheers,
James
expat.com Experts Team

I see ,but don't you need to file something in Brazil stating your Canadian income/pension , even though it's not taxable just to inform Receita....or was that done when you arrived?