Menu
Expat.com

Canadian income tax when working remotely in Brazil

Last activity 20 January 2023 by sprealestatebroker

Post new topic

some_guy_from_ontario

Hi all,

I'm in a weird situation and I don't know what is the best course of action. I would really appreciate some advice.

I'm a dual citizen (Brazil + Canada), employed by a Canadian company and normally I work remotely in Canada. I recently arrived in Brazil (around 2 months ago) and I continued to work my remote Canadian job, but now I'm thinking about staying here for a few years (maybe even 5-10 years) and then possibly returning back to Canada later on.

I have a Canadian bank account, credit card, OHIP and driver's license, and an address in Canada (parent's address; I don't own the property, but have it set as my place of residence).


Ideally, my goal is to be working a Canadian job in Brazil and paying taxes only in Canada as a resident. Is this possible in any way?


I also have a few more questions, sorry for the long list:
1. Do I need to file a NR73 or inform the government that I'll be out of the country for a long time?
2. What are the income tax implications of being a resident vs non-resident?
3. Can I be considered a factual resident?
4. Any advice on how to file taxes? Do I just file them normally as I would in Canada? What are my obligations?
5. What will be the tax implications for my employer if I stay in Brazil?
6. Do I pay taxes in Canada because of the Canada-Brazil tax treaty?
7. Any advice on how to move forward with this?

Thank you in advance.

Mikeflanagan

you really need to be doing your taxes providing you have a factual residency status ( not living in canada but significant ties to canada ie: bank accounts assets houses land etc ) BUT you are still going to need to consult with a local tax accountant on the matter as it varies state to state in brazil and then from there you have regional rules to follow and a whole list of items that are a per person situation, which this is why its hard to awnser specifically.

https://www.canada.ca/en/revenue-agency … tatus.html

gotta remember, if your taxes dont match in canada as to whats going on here, brazil will drop a hammer pretty quick. its not like canada in regards to leniancy or not being educated in the tax sector

Mikeflanagan

and if your unsure what to choose for canada, you can reach out to hr block or some major legal tax accounting firm as personal ones are a very poor choice as if anything happens your on your own in regards to accountability

Drjmagic

I remember doing my daughter's taxes for her and proudly announcing she only had to pay about $100 ini income tax. I later had a tax specialist go over the return, and she ended up getting a $400 refund. There are so many things an expert knows that average Joe doesn't.

You're situation has somany uncertainties and questions, that it would be well worth a few hundred $$$ to get a Canadian tax specialist involved.

abthree

01/23/22

If you'll be living in Brazil 180 days a year or longer, you should talk to a Brazilian accountant with whom you feel a level of confidence, as well.  Brazil has a reasonably generous policy on double taxation -- depending on your situation, you may only have to pay on what you bring into the country, or even only a portion of that -- but you'll probably still have to file. 

If you're a Brazilian citizen who's been living in Canada until two months ago, I imagine that you're registered with the Receita Federal as a non-resident without a tax liability here.  A local expert can help you prepare to minimize the impact of probably losing that status.  Waiting for the RF to show up at your door with questions a year or two down the road to start preparing is probably not the best plan.

kohlerias

Read the info on this link

Enprize

anther, what do you mean "what you bring into the country"?   My wife pulled over BRL200,000 out of the ATM last year - her account rep at BB told her she might have to pay income tax on that.   I didn't think that was correct since its all post tax money  but your comment leaves me wondering.  She has appointment in March with an accountant in Cotia. Can you clarify? Could be a lot of sleepless nights between now and March..   I've read the tax treaties between US and Brasil, and some online stuff and it looks like we just prove we have paid income tax in US and won't be texed again in BR.  Thanks, j

Enprize

Abthree.... frigging autocorrect.  Sorry

Texanbrazil

There is no tax treaty between the US and Brazil.
Your best bet is the accountant.
Was the BB account in both names or hers? If she is Brazilian and her account, She may need to pay taxes.

abthree

01/27/22

Enprize,

I doubt that you have a real problem, but for your own peace of mind, you probably should move your discussion with the accountant to an earlier date.  Brazilian taxes are filed at the end of April.

brunomourasilva

Hello, what did you end up doing?


I am in a similar situation, lol

sprealestatebroker

Rule of thumb...


In Brazil you are taxed on income, not consumption.   


Unless your pacheck is cashed out in a Brazilian Bank, with a Brazilian account of yours, it is not taxable. 


If they pay you through the local banking system, then it is taxable. 


Just don't go over spending.   

Articles to help you in your expat project in Brazil

  • The Brazilian labour market
    The Brazilian labour market

    In recent years, Brazil suffered through an economic recession and a government austerity program. Still, Brazil ...

  • Finding a job in Brazil
    Finding a job in Brazil

    It's better to get a job from abroad if you want to work in Brazil. In this article, find useful information to ...

  • Invest in Brazil
    Invest in Brazil

    With a population of more than 212 million and a growing middle class, Brazil represents many investment ...

  • Working in São Paulo
    Working in São Paulo

    São Paulo is Brazil's largest economic center by far, with many Brazilian firms headquartered here, as ...

  • Working in Curitiba
    Working in Curitiba

    Curitiba attracts many foreigners, who come both for work and because Curitiba offers a high standard of living. ...

  • Working in Rio de Janeiro
    Working in Rio de Janeiro

    Rio de Janeiro is Brazil's largest commercial center after São Paulo. With a diversified economy, it ...

  • Working in Fortaleza
    Working in Fortaleza

    Fortaleza is the capital city of the northeastern state of Ceará and is Brazil's fifth-largest city ...

  • Working in Belo Horizonte
    Working in Belo Horizonte

    Belo Horizonte (“Beautiful Horizon” in Portuguese) is the capital of the state of Minas Gerais. ...

All of Brazil's guide articles