Law No 13.54/2016 created the Special Regimen for Tax and Exchange Regularization – RERCT aiming to enable a differentiated regularization of goods and rights of lawful origin kept abroad.
It sets forth the possibility of a voluntary regularization of the investments abroad prior to increasing the exchange of information, for tax purposes, which is being implemented among a number of countries. Correspondingly, RERCT allows, in addition to the tax and exchange regularization of the taxpayer, the amnesty for offenses directly related to these irregular investments.
Individuals residing in Brazil since December 31st, 2014 may adhere to the RERCT. Such adherence is prohibited to public employees and individuals in position of trust or elected to perform public services, as well as to their respective spouse, blood relatives or others alike up to the second degree or adopted, by January 14th, 2016.
Regimen adhesion is formalized by sending the Tax and Exchange Regularization Statement – DERCAT, which informs the balance of the goods and rights kept abroad on December 31st, 2014. It is also necessary to correct or prepare and send the Income Tax Returns – DIRPF and the Statement of Brazilian Capital Abroad – CBE of the 2014 and 2015 years.
Regimen adhesion implies payment of the income tax and fine, which, together, result in a total rate of 30% (15% of IR on the balances and a fine equivalent to the tax amount).
It is Important to mention that the regimen does not presume that the amounts must necessarily enter in Brazil but, if necessary, it allows part of the amount to be previously repatriated to pay the aforementioned tax and fine.
The deadline for adhering to the regimen is October 31st, 2016.