Brazilian citizen working in US Living in Brazil

Hello Augusto,

As a Brazilian citizen and non-resident for any Canadian sourced income you will be subject to a 25% non-resident withholding tax which should be deducted at the source. This tax is a fixed rate and quits any tax debt you may have so you will not need to file an income tax return with Canada Revenue Agency, since you will neither owe or receive any refund.

For any USA sourced income you will be required to file a 1040NR Nonresident Income Tax return with the IRS you may qualify for a tax refund if your net income tax payable is less than the income tax that was deducted at the source.

Regardless of both of these as a Brazilian citizen you MUST file a DIRPF every year if your annual income exceeds R$14.550,00 (approx.). You MUST report any foreign income, regardless of where its source may be as "World Income". The Receita Federal wants to know where every centavo of your income comes from and how much you earned, make no mistake about it.

Since you will not receive any refund from Canada, you will probably be able to deduct the withholding taxes you paid on that income on your Brazilian DIRPF. There is a Canada/Brazil Income Tax Treaty.

You will likewise probably be able to deduct any taxes paid to the IRS on your DIRPF.

In both cases you will receive a tax receipt from the IRS or your paychecks will reflect a 25% withholding tax for Canada and those receipts should be submitted along with your DIRPF.

Just don't forget to report all foreign income to the Receita Federal. Otherwise you will end up with a huge fine and lots of headaches.

Cheers,
William James Woodward - Brazil & Canada Expert, Expat-blog Team