Income Tax 2025: new requirements for statement assets and investments abroad.

Those with assets abroad should be aware of the intensification of cross-checks and new requirements in the 2025 Income Tax Statement.

With the opening of the 2025 Income Tax season, some important points, especially regarding the declaration of assets and investments abroad, require extra attention from taxpayers in this situation.
The Federal Revenue Service continues to intensify its scrutiny of individuals with assets outside of Brazil, and recent changes demand caution to avoid inconsistencies and issues with the tax authorities.
In partnership with international institutions, the Brazilian tax authorities are increasingly attentive to global financial transactions and have implemented stricter transparency measures. This year's income tax return already reflects aspects of this movement.
In fact, one indication that the oversight is broader and more accurate is that, starting this year, data on foreign bank accounts can be automatically uploaded through the pre-filled tax return. Given this, it is clear that taxpayers should not risk omitting financial information from abroad.

Mandatory Submission of the Tax Return

The tax return for the 2025 fiscal year, calendar year 2024, aligns with the requirements of Law No. 14.754/2023, which established the taxation of offshore entities and income from financial investments abroad. As a result, among other cases of mandatory submission, individuals who are residents in Brazil must file an income tax return if:

• Chose to declare the assets, rights, and liabilities held by the controlled entity, directly or indirectly, abroad as if they were directly held by the individual;
• Held, on December 31, the ownership of a trust and other contracts governed by foreign law with similar characteristics;
• Earned income from capital invested abroad in the form of financial investments and profits and dividends from controlled entities.

Regardless of the amount invested, anyone who earned income from financial investments or profits and dividends abroad last year must file the tax return in the 2025 season. It is important to remember that the deadline to settle accounts with the "leão" is until May 30.

Read more: Income Tax 2025: Federal Revenue Service announces new rules. 

Taxation of Income abroad

For the first time, there will be tax collection based on the rules defined by Law No. 14.754/2023. Income earned abroad will now be taxed definitively in the annual adjustment tax return, with a rate of 15% (until 2023, payment was made monthly).
Before this regulation, each sale of assets, receipt of income, or redemption was treated as a capital gain transaction, with a tax rate that could range from 15% to 22.5%. The income tax on capital gains had to be paid in the month following the transaction.

Impacts on the 2025 Income Tax return

In this year's tax return, assets representing investments abroad now allow for the reporting of income and taxes paid, either in Brazil or abroad.
The "Assets and Rights" section now includes a field to specify the country where the investment is located. The taxpayer must report how much tax was paid abroad, and the system will automatically calculate how much additional tax will need to be paid in Brazil, if applicable.
For example, if 10% tax has already been paid abroad, the taxpayer will pay an additional 5% in Brazil (reaching the established rate of 15%). If the tax paid abroad is equal to or greater than 15%, the balance will be zeroed here. There will be no charge in Brazil, but no refund will be provided for any taxes paid abroad at rates higher than 15%.

Information verification

Regarding the information automatically loaded with the pre-filled return, a feature that will be available starting April 1st, a caution is necessary. As the Federal Revenue itself has emphasized, all data must be verified by the taxpayer. The taxpayer needs to be able to document everything, even if the fields have been automatically filled.
Therefore, it is important to gather the necessary proof regarding the transactions during the process of preparing the return.

Income Tax with security and peace of mind

Entrusting the preparation of your income tax return to DPC specialists ensures that you will go through this season with security and peace of mind. Ensure your tax compliance with our support: dpc@dpc.com.br.