- Income Tax Return

Among the conditions of obligation to submit the Annual Income Tax Return in Brazil is the individual who acquires the condition of tax resident.

In other words, regardless of any income condition, all individuals who become resident for tax purposes in Brazil must submit an Annual Income Tax Return.

That is, all individuals who became tax resident in Brazil in 2020 are required to file an Annual Income Tax Return in 2021, relating to the period of tax residence in 2020.

- Calculation of Capital Gain Tax

The capital gain earned by foreigners on assets located in Brazil, or abroad, are also subject to Brazilian tax legislation.

The capital gain, it is worth remembering, results from the difference between the sale value and the acquisition cost of the asset or right.

Income from financial investments abroad (e.g. interest) are also considered taxable as capital gains.

- Declaration of Brazilian Capital Abroad (CBE)

The presentation of the annual Declaration of Brazilian Capital Abroad (CBE) is mandatory for foreigners who are residents and domiciled in Brazil and possess assets, goods and rights abroad that total or exceed US$ 1,000,000.00 (one million U.S. dollars on December 31 of each year).

The quarterly delivery of this declaration must be made when goods and rights abroad total an amount equal or superior to the equivalent of US$ 100 million United States dollars on March 31, June 30 or September 30 of each year.

For purposes of the CBE, the following are considered assets: goods and rights, real estate, deposits, availability in foreign currency, loans, shares, participation in the capital of foreign companies, among others.

- Communication and final exit statement

When planning to leave Brazil, the foreigner must be aware of the need to present two documents required by the Federal Revenue:

• Communication of Definite Exit from the Country: formally communicates to the agency the date of exit from Brazil, being still necessary to evaluate if the exit takes place on a temporary or permanent basis.


• Definitive Exit Declaration: directed to the declaration and taxation of the income obtained between January 1st and the effective date of exit from the foreign country.

Those obliged must submit the declaration from the first working day of March to the last working day of April of the calendar year following the exit, if it occurred on a permanent basis, or from the date of characterization of the non-resident condition, if the exit occurred on a temporary basis.