Tax Amnesty to Brazilian Non-Declared Offshore Funds
On March 15, Normative Ruling No. 1627 regulating what has been named “Regime Especial de Regularização Cambial e Tributária (RERCT)” set by Law No. 13.254/16 was published. This ruling is currently being reviewed by the Federal Supreme Court.
The Normative Ruling opens up a tax window from 4.4.2016 to 10.31. 2016 for individuals interested in adhering to RERCT so among other things, they can file a disclosure identifying the legally obtained resources, goods and rights to be regularized as of 12-31- 2014 that had not been previously disclosed or that were disclosed in an inaccurate or incomplete manner.
The above mentioned “DERCAT” (for its initials in Portuguese) disclosure and identification causes a tax payment and the corresponding fine totaling a 30% of the total value of the assets subject to regularization. To calculate the value of said percentage will depend on the specific good or right.
This disclosure is optional, being necessary for those persons choosing RERCT as an option. Without prejudice thereof, there are certain individuals that cannot opt to be part of this amnesty, such as persons holding public offices, jobs or functions, nor their spouses, relatives by blood, second degree of affinity relatives or relatives by adoption, on the date of the publication of the mentioned Law.