Reopening of Special Scheme for Currency and Tax Settlement (RERCT)

The Federal Revenue of Brazil (RFB) by the Normative Instruction RFB No. 1704, published in the Official Gazette of Apr-03-2017, established the reopening of the Special Scheme for Currency and Tax Settlement (Regime Especial de Regularização Cambial e Tributária - “RERCT"), according to Law No. 13,428/2017.

The taxpayer may join the scheme by filing Statement of Currency and Tax Settlement (Dercat) and tax payment and penalty until July 31, 2017.

Individual or company who may opt for Rerct are those resident or domiciled in Brazil in 06/30/2016, holder of assets and rights of lawful origin, prior to that date, unstated or stated required data to RFB with omission or inaccuracy unless sentenced in legal action whose object is one of the crimes listed in Paragraph 1 of Article 5 of Law No. 13,254/2016, although not final and unappealable, observing the following:

a) the RERCT also applies to non-resident at disclosing of Law No. 13,254/2016, provided that resident or domiciled in Brazil in Jun-30-2016, according to tax laws;

b) RERCT also applies to the estate whose succession has been started until the joining date to this scheme;

c) the effects of Law No. 13,254/2016 shall not apply to holders of direction or elective public positions, jobs and functions, or their spouses and blood relatives or alike, to the second degree or by adoption, in the publication date of Law No. 13,254/2016, Jan-14-2016.

Despite of playing much of the previous scheme version content (RFB Normative Instruction No. 1,627/2016), we suggest the complete reading IN No. 1704, for a better knowledge of the subject by accessing here.