tax-filing obligations tied to CPF

22POSTS

12 years ago

I promise I've scoured the forum and couldn't find any information before posting this.

I'm in Brasil on a tourist visa, and I got a CPF so I could buy some items that required ID. I don't work here, I'm not paid by anyone here, but I've been told that, by having a CPF, I'm now required to file a tax form - not unlike filing a tax return in the U.S. even if you don't owe any money.

Can someone please tell me, or direct me to, more information about this? I know about the official Brasilian website, but my Portugues isn't that good.

Thanks in advance. I just want to stay clear of any trouble for my future returns to this country.

See also

The tax system in Brazil - Guide
Tax advisors in Brazil - Business
Taxes: Trying to file declara莽茫o de sa铆da - 2 Replies
Taxes for retirees / when to file - 4 Replies
Getting a CPF TAX ID Number, Brazil in Britain - 1 Reply
Filing IRPF - 9 Replies
Tax obligation as digital nomad (Spain-Brazil) - 4 Replies

James ViP

11272POSTS

12 years ago

Any person who earns a (Brazilian sourced) salary LESS THAN R$24.556,65 and has not acquired real property during the year does not file a Declara莽茫o de Imposto de Renda Pessoa Fisica (DIRF). They are exempt from tax.

So, the information your received was incorrect.

William James Woodward, Expat-blog Experts Team

nsellen Member

22POSTS

12 years ago

Thanks, William. The person who told me is a Brasilian who is now a pensioner, and it made sense that I'd have to file, if only to prove that I didn't owe taxes. But I stand corrected. Thanks for your prompt reply.

stevefunk Serial expat

671POSTS

10 years ago

How do I get a CPF

I got a viper and a marriage certificate but now struggling to get the CIE due to a missing form
can I get it without the CIE

Seems like I can from what I've read so far

James ViP

11272POSTS

10 years ago

You can get your CPF directly from the Receita Federal, or from Correios or Caixa Econ么mica Federal. You really only need your passport as ID in order to apply.

Cheers,
James聽聽聽Expat-blog Experts Team

philmoto85 Active member

87POSTS

10 years ago

I saw in another forum to finish getting the CPF he had to take it to the minister de fazenda. If I get it the Correios is there still a second step?

stevefunk Serial expat

671POSTS

10 years ago

I had to go to the Recita federal to justify not voting

Seems wierd I know but thats a Procedure , Recita Federal is like the Brazilian version of an IRS branch

Apparently it's normal to do this

James ViP

11272POSTS

10 years ago

Yes, stupid as it seems one of the things you need to get a CPF is a Voter's Card (Titulo Eleitoral). Of course since expats can't vote, they don't get a Voter's Card, but you still have to go to the Receita Federal to finish the CPF process, to show them your passport or CIE and tell them, "Hey idiot, I'm a Gringo.... we can't vote!!!" Then they issue your CPF.

Gotta love Brazil.

Cheers,
James聽聽 Expat-blog Experts Team

1 member reacted to this post

Vegas12 Active member

37POSTS

10 years ago

If you earn income for outside Brazil do you need to pay taxes. I have income from the USA and pay taxes in the US. I just thinking about moving to Brazil. I do have CPF number but do not live in Brazil at this time. Thanks

James ViP

11272POSTS

10 years ago

#10

All citizens and permanent residents of Brazil who earn over R$26.816,55; or non-taxable amounts in excess of R$40.000,00 (2015 figures) must file a Declara莽茫o de Imposto de Renda Pessoa F铆sica - DIRPF.

You are required to report your foreign sourced income as "world income", just as you are in many other countries including the USA.

You are also required to file a DIRPF in the year which you become a resident of Brazil, regardless of the amount of your income.

There is no bilateral Tax Treaty between the USA and Brazil, so really the only protection you would have against double taxation would be that which the IRS may provide you. This becomes a very important issue when you are talking about retirement pensions.

In my personal situation, for example, there is a Tax Treaty between Canada and Brazil. It states clearly that pension benefits payed by either country are taxable only in the country which pays them UNLESS the receiver has naturalized in which case they become taxable in the country of naturalization. So my CPP benefits are only taxable in Canada, since I have not naturalized. I have not got sufficient Brazilian income to require me to file a DIRPF (even if I had to report my pension). So I pay no income tax in Brazil. My CPP is below the basic personal exemption in Canada, so I get a refund of every cent that has been withheld in taxes. That would not likely be the case if my pension was taxable here.

Unfortunately you would not have such protection without a Treaty.

Cheers,
James聽聽聽Expat-blog Experts Team

SrGrumpy New member

6POSTS

10 years ago

#11

All citizens and permanent residents of Brazil who earn over R$26.816,55; or non-taxable amounts in excess of R$40.000,00 (2015 figures) must file a Declara莽茫o de Imposto de Renda Pessoa F铆sica - DIRPF.

Does this apply if the permanent (sic) resident spends less than 183 days in Brazil annually?

PS - and has no Brazilian-sourced income and/or falls below the R$26.816.55 threshhold?

James ViP

11272POSTS

10 years ago

#12

Hi SrGrumpy,

If you have a VIPER (i.e. Perman锚ncia Definitiva) the 183 day rule doesn't even apply. If you enter Brazil with a VIPER, in fact, you are taxable right from day one.

Provided that your total "worldwide" income falls below R$26.816,55 threshold and you have not purchased a home during the year you would not need to file a DIRPF.

If you purchase a home, regardless of your income for the year, it is required to file a DIRPF to report the purchase and thus establish its purchase value to be used as the basis for a capital gains tax in the future when and if the home is sold.

Just like in the USA and Canada, in Brazil you are required to report all income from foreign sources; and since there is presently no bilateral Tax Treaty between the USA and Brazil there is no protection against double taxation, apart from that which the USA gives you.

Once upon a time... all taxpayers had to file an annual Declara莽茫o de Isento, stating that you had earned less than the tax threshold. Fortunately that went the way of the Dodo bird several years ago.

Cheers,
James
expat.com Experts Team

SrGrumpy New member

6POSTS

10 years ago

#13

Thanks. That's the answer I'd feared. I was planning to get a marital ViPer in the event of some modest work opportunities arising in Brazil later this year, but I'm not sure it's worth the effort.

PS I think you have written elsewhere that tax collection is the one area where the Brazilian government excels itself (at least as far as taxing the common folk), so I assume it's risky to avoid the paperwork process.

James ViP

11272POSTS

10 years ago

#14

Yes, the Receita Federal is ruthless in their ongoing efforts to collect taxes due them. They even have a fleet of helicopters that they use to fly over costal resort areas filming residences for activities, construction, vehicles, etc., that would indicate one is living above their declared income. They catch a lot of tax evaders exactly that way.

Not uncommon for a government where they themselves are so corrupt and steal so much, that they hate the competition and go to the wall if you steal one centavo from them in the way of unpaid taxes.

Cheers,
James
expat.com Experts Team

travelr64 Active member

55POSTS

10 years ago

#15

If I understand correctly, with a pension income of US$36,000 I will pay 27.5% annual income tax in Brazil, correct?聽 On top of whatever income taxes I pay for this pension in the U.S..

James ViP

11272POSTS

10 years ago

#16

travelr64 wrote:
If I understand correctly, with a pension income of US$36,000 I will pay 27.5% annual income tax in Brazil, correct?聽 On top of whatever income taxes I pay for this pension in the U.S..

Yes, since there is no bilateral Tax Treaty between the USA and Brazil, you will pay on a progressive scale up to 27.5% on you income. However, you won't pay that on the whole income, you pay the lesser percentages on the amount of income in each increment. Also there are two scales in effect for the 2015 tax year, one from January to March, and the other from April to December. It's extremely complicated and certainly filing a DIRF in Brasil IS NOT something you should undertake on your own. You certainly should use an accountancy firm experienced in processing tax returns for expats.

You should also prepare your Brazilian DIRF before you file your 1040 with the IRS since you may qualify for a tax deduction on the taxes you've paid in Brazil. (That is not to say that you necessarily need to have paid them first, just that you calculate exactly what you will pay.) Since I'm not a US citizen I can't tell you exactly what or how much those deductions would be, but there are certain provisions in the Income Tax Act for this eventuality.

For the tax tables (based on montly income in R$) see:聽

Every time I get this question from a US citizen I thank God that I'm a Canadian and have not naturalized. My Canadian Pension Plan benefits are not taxable in Brazil due to provisions of the Bilateral Canada/Brazil Tax Treaty unless I naturalize. Given that my gross income does not exceed the basic personal exemption, while taxes are deducted at the source, I get every cent back when I file my T1-General in Canada each year.

Cheers,
James
expat.com Experts Team

stevefunk Serial expat

671POSTS

10 years ago

#17

James , do you use a professional accounting firm for your taxes as an expat?

James ViP

11272POSTS

10 years ago

#18

No because I do not file taxes in Brazil. I prepare my own Canada T1-General Income Tax Return and haven't Brazilian income sufficient to require me to file here.

That said, if I earned enough to require me to file in Brazil I wouldn't dream of trying to prepare my own taxes; too many rules, they add hundreds of new ones each month, and filing is way too complicated.

Cheers,
James
expat.com Experts Team

stevefunk Serial expat

671POSTS

10 years ago

#19

I see ,but don't you need to file something in Brazil stating your Canadian income/pension , even though it's not taxable just to inform Receita....or was that done when you arrived?

James ViP

11272POSTS

10 years ago

#20

No I don't even need to file a return in Brazil because my TAXABLE INCOME is less than R$ 26.816,55. Anyone earning less than that amount does not file. Don't forget that my Canadian pension is NOT taxable income in Brazil because of the Treaty and the fact that I'm not naturalized.

Sorted all this out with the Receita when I started to receive my pension, and even had to take them a copy of the Brazil/Canada Tax Treaty because the head guy at the Receita here just doesn't have a clue. I showed him the Treaty, translated the specific section for him and once he understood that the Treaty clearly states that pension income is ONLY taxed in the country which pays it, unless the taxpayer has naturalized in the other country was told that only if my combined income including the pension were to exceed the basic exemption (above) then I'd have to file a return and report the pension even though in the end I would still owe no tax in Brazil. He also stated that I would also have to include a letter stating the section of the Treaty every year that I filed just to make sure that they didn't tax it. Even they don't know all their rules!!!

Cheers.
James
expat.com Experts Team