We inform that the deadline for joining the tax and exchange regularization program (repatriation of funds) ends on October 31, 2016.
The Special Tax and Exchange Regularization Regime and Tax (RERCT) established by the Federal Law nº 13.254 /16 allows the repatriation of assets, goods or property rights held abroad by resident or domiciled in the country that were undeclared or incorrectly declared to the Internal Revenue Service Brazil (RFB).
This is an opportunity to allow companies or individuals to repatriate assets held outside Brazilian Territory by paying income tax over those assets as well as income tax arising from non-compliance with tax obligations and a reduction of 100% (one hundred percent) over default interest, penalties and others accessory obligations directly related to foreign capital and related to events that occurred before December 31, 2014.
Therefore fines for failing not complete or submit the declaration of Brazilian Foreign Capital will also be exempted from fines ( Central Bank and CVM).
It should also be stated that joining the regime will also lead to the extinction of criminal liability – on the limits of the law – specially tax evasion, crimes against the tax and financial system.
There is no mandatory the actual repatriation of funds, which can be hold outside and required to be declared and taxed in Brazil.
It is important to remember that the opted in for the regime over assets over USD 100,000.00 (one hundred thousand dollars of the United States) shall be held by foreign financial institutions and financial institutions authorized to operate in Brazil.
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