Definitive Country Exiting Communication x Definitive Country Exiting Statement

Those who already live abroad or plan to make such a change should be aware of the rules of communication to the Internal Revenue Service, to be in a regular situation with Personal Income Tax (IRPF).

The final exit process involves the Definitive Country Exiting Communication (CSDP) and the Definitive Country Exiting Statement (DSDP), which may confuse the person who wishes to inform that they are about to leave or have already left Brazil, changing their status relative to residence.

What is Definitive Country Exiting Communication?

It is the formal communication that must be filed between the date of final departure and the last day of February of the subsequent calendar year. The Definitive Country Exiting Communication (CSD) must be filed by those who, in 2018:

- Definitively exits Brazil and;

- Become a nonresident in Brazil, when temporarily exiting the national territory.

What is the deadline for filing the Definitive Country Exiting Communication?

Definitive Country Exiting Communication must be filed from the departure date until the last day of February in the calendar year following the departure, in 2019 will end in February 28. It can be done in two ways:

- Temporary exit condition: After 12 months of absence from the national territory when there was no intention to leave the country definitively;

- Permanent exit condition: Going abroad with the decision to leave the country for good.

Important: The presentation of the CSDP does not dispense the presentation of the Definitive Country Exiting Statement, the statements corresponding to previous calendar years (if obligatory and not yet filed), and the collection of tax calculated and other tax credits not yet paid.

What is Definitive Country Exiting Statement?

Those who moved abroad, in addition to making the communication on a permanent basis (mentioned above), must present the Definitive Country Exiting Statement. The purpose is similar to that of the Annual Adjustment Statement (DAA), to determine the tax due or to refund in relation of the period in which the person resided in Brazil in the calendar year prior to the filing statement.

What is the deadline for filing the Definitive Country Exiting Statement?

Those taxpayers required must file the Statement of Final Departure from Brazil from the first working day of March until the last working day of April of the calendar year following the departure, if this occurred on a permanent basis, or from the characterization date of the non-resident condition, if the departure were on a temporary basis. Attention, for 2019, the deadline for DSDP is April 30.

What is the penalty for late filing of Definitive Country Exiting Statement?

In case of existence of tax due, the filing of DSDP after the deadline subject the taxpayer to a penalty of one percent (1%) per month or fraction of delay calculated on the amount of tax due, considering the minimum value of R$165.74 and up to twenty percent (20%) of tax owed. If there is no tax due, R$165,74 for penalty.

Note: It should be noted that the annual adjustment statements for the previous calendar years, if mandatory and not yet submitted, must also be transmitted within the deadline for submission of the Definitive Country Exiting Statement.

How DPC may help your company?

Domingues e Pinho Contadores has specialized team ready to assist your company.

Contact us by the e-mail dpc@dpc.com.br