There is a newly enacted voluntary disclosure program in Brazil that provides a pathway for the repatriation of previously undeclared or underreported assets held abroad.
The law—Lei nº 13.254 de 2016—was published in the official gazette on 14 March 2016, and applies for undeclared assets with respect to tax periods prior to 31 December 2014.
The provisions allow taxpayers to declare assets held abroad or to revise incorrect data about their assets—including bank deposits, investments, insurance policies, loans, pension plans, stocks, equity investments, intangible assets, and real estate. It also applies with respect to certain automobiles, airplanes, and private boats (subject to certain lien provisions). The tax that will be imposed will be equal to a rate of 15% (that is, the rate of capital gains tax as of the end of 2015).
In determining the value of the assets, taxpayers are to convert the value into U.S. dollars and then into Brazilian Reais.
The deadline to participate in this program generally is 210 days from the date of publication of the law, or 210 days from 14 March 2016.
Read an April 2016 report (Portuguese) [PDF 50 KB] prepared by the KPMG member firm in Brazil: Lei da Repatriação
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.