Brazil: New Tax Amnesty Law

Brazil: New Tax Amnesty Law

On 31 March 2017, Brazilian Law 13 428/2017 set a deadline, and established new conditions, for taxpayers to join the Voluntary Disclosure Programme for Unreported Offshore Assets (known in Brazil as “RERCT”), which allows a regularisation of tax and currency-related situations. (1)

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As in its previous edition2 The Tax Amnesty Law is a “chance” for taxpayers to regularise their situation with regard to lawful resources, assets and rights that have not been declared or were incorrectly declared after being sent, kept abroad, or repatriated. The Brazilian President signed the law, already approved by the Congress; some restrictions concerning assets to be declared still remain from the previous programme.3

To qualify for the programme, you must have been a tax resident or domiciled in Brazil by 30 June 2016, and already have owned or held the resources, assets and rights at that time, even if you were not the legal holder; you must additionally not be previously convicted of any of the following crimes:

  • Crimes against the tax system
  • Tax evasion
  • Evasion of social security contribution
  • Falsifying public or particular documents, or their use
  • Foreign exchange operations in support of tax evasion
  • Money laundering crimes or concealment of assets, rights or values4


This law does not cover politicians, public servants and all those who hold public positions, as well as their spouses, relatives and relatives by affinity.

Those who are willing to join the Amnesty Programme should file a specific regularisation declaration with the Brazil Federal Revenue within 120 days after the Brazil Federal Revenue enacts the RERCT regulation.5 This declaration should contain all of the following:

  • An identification of the taxpayer
  • A description of the resources, assets and rights, and their total respective value given in local currency
  • Information to prove the nature, origin and ownership of these
  • A declaration from the taxpayer referring that the income derives from a lawful economic activity


Additionally, a copy of this declaration should be delivered to the Brazilian Central Bank.

Income and additional gains earned as from 1 July 2016 must also be included in the 2016 annual tax return, or in its future adjustments.

When filing the declaration with the Brazil Federal Revenue, the individual or entity wanting to join this programme must pay a 15% income tax on the amounts reported for regularisation, as well as a 20.25% penalty (against 15% of the previous programme) on those amounts, which totals 100% of the income tax due. However, amounts up to BRL 10,000 are exempt from the 20.25% penalty.

The payment of the 35.25% charge results in an exemption from further penalties, legal charges and interest for default.

After this payment, the individual or entity can opt to keep the amounts abroad or to repatriate them, as this regime does not oblige the taxpayer to repatriate the income, but simply to declare it.

In cases where the taxpayer opts to repatriate the income, a financial institution enabled to operate in the foreign exchange market should present the membership statement to RERCT, and follow the due procedures. If the amounts involved are higher than USD 100,000, the taxpayer should request and authorise the foreign financial institution to send information of these amounts to the local financial institution, which will communicate it to the Brazil Federal Revenue.

Consequently, the Amnesty Programme allows certain tax and currency-related crimes to become exempt from criminal liability, such as the ones mentioned above. Therefore, provided that the above requirements are met, there will no longer be any currency or financial obligations deriving from the non-disclosure of lawful resources, assets and rights.

(1) Tax regularisation programmes have been adopted already by several countries, such as USA, England, Spain, Italy, Netherlands, Germany, France, Portugal, Sweden, Switzerland, Chile, Australia and South Africa

(2) Brazilian Federal Law 13 254/2016

(3) The possibilities of repatriation of works of art, jewels, precious metals and resources on behalf of third parties, as well as payment of the income tax and penalties in instalments, were rejected

(4) As determined in Brazilian Federal Law 9 613/1998

(5) Which is expected to happen by the end of April 2017

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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