Brazil

Visas

The Brazilian Migration Law (Law 13,445), in force as of 21 November 2017, formally revoked the ‘Foreigner Statute Law' (Law 6,815/1980), defining the rights and obligations of foreign individuals in Brazil, either as residents or visitors.

Brazilian authorities may grant visit or temporary visas to foreigners who intend to visit or live in Brazil. 

A Visit Visa (VIVIS) will be applied for those who come to Brazil for tourism, business, transit, and for the performance of audit and consulting activities for up to 90 days. The law prohibits any remunerated activity under this type of visa; however, the foreigner visitor may receive daily allowances for travel expenses.

A Temporary Visa is necessary for any type of work with or without an employment contract, such as technical services or maritime work. It also applies for those coming to Brazil for research, health treatments, study, vacation or summer jobs, family reunion, and investments, among other situations.

Official, diplomatic, and courtesy visas are generally applicable for foreign government representatives or private employees who travel to Brazil for an official visit, under a temporary or permanent nature. 

Residence authorisation

The residence authorisation may be granted to foreigners while in Brazil depending on the circumstance. Citizens from countries located on the border of Brazil, as well as those who are from countries that are part of the Mercosul agreement, have a more expedited application process. 

The aforementioned legislation also affects the current individual tax residence rules with respect to foreign individuals in Brazil, which will need to be duly updated by the Brazilian IRS to take into account the new types of visas and new rules for residence authorisation.

Brazilian Central Bank (BACEN) Reporting Requirement

Brazilian capital abroad (CBE) consists of values, goods, rights and assets of any nature held outside the national territory by residents in Brazil.

These capitals must be declared to the BACEN, annually or quarterly, depending on their classification. The declaration is mandatory for individuals or legal entities

resident, domiciled or headquartered in the country, who hold, abroad, assets totaling:

· US$ 1,000,000.00 (one million), or equivalent in other currencies, on December 31 of each base year – Annual CBE; and

· US$ 100,000,000.00 (one hundred million), or equivalent in other currencies, on March 31, June 30 and September 30 of each base year – Quarterly CBE.

The deadline for the delivery of such reporting requirements, according to the rules issued by the BACEN, are as follows:

· For the annual declaration referring to the base date of December 31 of each year: from February 15 to April 5 of the following year;

· For the quarterly declaration referring to the base date of March 31: from April 30 to June 5 of the same year;

· For the quarterly declaration referring to the base date of June 30: from July 31 to September 5 of the same year; and

· For the quarterly declaration referring to the base date of September 30: from October 31 to December 5 of the same year.

The non-compliance with the BACEN obligations may subject the individual to penalties that may reach up to BRL 250,000, which can be increased by 50% in some cases.

Departure from Brazil

A resident taxpayer of Brazil who leaves the country permanently or becomes a non-tax resident after 12 months outside of the country (due to a temporary departure) must file a Communication of Definitive Departure to the Brazilian tax authorities.

The deadline for filing a Communication of Definitive Departure from Brazil is up to the last business day of February of the calendar year subsequent to the year of departure from Brazil on a permanent or temporary basis, as follows:

• Permanent departure: as of the date of departure and up to the last business day of February of the subsequent calendar year.
• Temporary departure: as of the date when the status as a non-resident is typified until the last business day of February of the subsequent calendar year.

Additionally, a resident taxpayer must file a Definitive Departure Income Tax Return, which will comprise the period of fiscal residency in Brazil. The filing deadline of a Definitive Departure Tax Return is the last business day of April of the following calendar year. At that time, the individual must also file any annual Brazilian income tax returns due and not yet filed as well as request for an issuance of a Tax Clearance Certificate before the tax authorities.