Income tax on remittances regulated
31 de maio de 2016
Brazils Federal Revenue has enacted a rule slashing the withholding tax on cash remittances to foreign countries for purposes of covering personal expenditures.
Brasília – The Brazilian Federal Revenue has issued a rule this Tuesday (31st) on the Federal Official Gazette slashing the withholding income tax (Imposto de Renda Retido na Fonte - IRRF) on remittances of cash for covering personal expenditures incurred in other countries by natural persons residing in Brazil, on trips for leisure or business purposes, rendering of services, training, or official missions.
The 25% to 6% tax cut on remittances for payment of travel packages is provided for in Provisional Measure #713, issued on March 1st. The ruling is an addendum to the Provisional Measure and outlines the procedures that must be adopted by tour operators and travel agencies in order to enjoy the tax break. The tax cut is limited to a maximum amount of BRL 20,000.
*Translated by Gabriel Pomerancblum