Digital Nomad & Taxes

07/12/220Does anyone have more info regarding taxation? As I understand it, if you stay more than 183 days in Brazil you have to pay taxes on your worldwide income, unless there is a dual taxation treaty between your country and Brazil.

That being said, it kind of defies the purpose of a digital nomad visa if you are doubly taxes.

- @littletower

Does anyone have more info regarding taxation? As I understand it, if you stay more than 183 days in Brazil you have to pay taxes on your worldwide income, unless there is a dual taxation treaty between your country and Brazil.

That being said, it kind of defies the purpose of a digital nomad visa if you are doubly taxes.

- @littletower

@rraypo

Hello there.

I am also an expat from USA.

Just wondering a couple things about what you mentioned.

I noticed that Brazil taxes their residents (while they are living in Brazil) on their world wide income.

Questions:

1) Does Brazil check on residents (residing in Brazil) to see if they have foreign income paid to them in other countries (especially their home country).

• Example someone lives in Brazil on a Permanent Residency.
• Money paid to their USA bank account.
• Money paid was from commissions from a USA online retailer for sales from digital products, etc.
• They are given a 1099 report at the end of the year, so they can pay their taxes to the IRS.
• They pay taxes to the IRS in USA.
• They do not have a Brazilian Bank account.

2) You mentioned that you never had to pay taxes to Brazil. Was the money generated only from property rentals?

I would like to speak to someone who knows about this kind of stuff. You mentioned that you had an accountant that handles things for you.

It would be great to talk to someone. Do you have their contact info?

Thanks!

@rraypo
Hello there.
I am also an expat from USA.
Just wondering a couple things about what you mentioned.
I noticed that Brazil taxes their residents (while they are living in Brazil) on their world wide income.
Questions:
1) Does Brazil check on residents (residing in Brazil) to see if they have foreign income paid to them in other countries (especially their home country).
Example someone lives in Brazil on a Permanent Residency.
Money paid to their USA bank account.
Money paid was from commissions from a USA online retailer for sales from digital products, etc.
They are given a 1099 report at the end of the year, so they can pay their taxes to the IRS.
They pay taxes to the IRS in USA.
They do not have a Brazilian Bank account.
2) You mentioned that you never had to pay taxes to Brazil. Was the money generated only from property rentals?
I would like to speak to someone who knows about this kind of stuff. You mentioned that you had an accountant that handles things for you.
It would be great to talk to someone. Do you have their contact info?
Thanks!
-@ExpatUSATravels

1) Does Brazil check on residents (residing in Brazil) to see if they have foreign income paid to them in other countries (especially their home country).

Not unless it shows on your spending and bank balance this side of the pond. 

Hey, you are dealing with unmotivated public servants.  They go after big fish out here.  Real Tax Cheats.   " commissions from a USA online retailer for sales from digital products, etc. " is chicken shit for them. Some big time racketeer huh?

Otherwise, You can declare ,voluntarily, on your pro forma, money earned abroad, as a Legal Resident.  I am sure there is a field for this one on the online forms.

I've done my taxes. on my own.  I am no tax expert. Don't need to .. It ain't rocket science, if you can read the language. If I am not running a complex business and I can make  time for this, it's just like making crossword puzzle.

His rentals might just fallen short of the taxable treshold for all we care.  Don't ask these questions in public forum.  He is a registered property owner, For all he has told us, He's under R$ 24,000 per year on his rental. That means, full exemption. He declares his gross rent, pays zero on the bracket. and he is free of any further encumbrances. Simple as that.

"I would like to speak to someone who knows about this kind of stuff."   This ain't your friendly H&R Block.  Go get professional advice.

@sprealestatebroker

Gotcha,

Thanks for the candid comments as I'd like as many of them as I can collect.

I know how things work from home country.

I just need to know how things work here.

The one thing I do know, that many places on the globe now share information and I am not sure how advanced it is and what is connected.

I did not know these days, if by the click of a button important records can be downloaded within seconds from country to country for new residents.

Or annual stuff if you know what i mean.

My main concern is to just fly low and have no issues.

The most important thing in my example was that there was no bank account for Brazil.

And would like to add that...

*From what I'm thinking that all is cool if just wanting to use credit cards from USA to buy stuff at grocery stores or eat out,

*And also maybe pulling out some cash in BRL from ATM's here using debit card which might total about 2K in BRL per month or so.

I'm guessing if this is the case then filing stuff is not needed.

One last thing to add - My name now is not on anything in Brazil. No cell phones, no rentals, nothing, esp. not banks...

Only thing I want my name on is with the BR Gov in order to get another PR here (which is easy to get since I'm married to a BR.

@sprealestatebroker
Gotcha,
Thanks for the candid comments as I'd like as many of them as I can collect. 

You are welcomed

I know how things work from home country.

US citizen here. I get it.

I just need to know how things work here.

Fair

The one thing I do know, that many places on the globe now share information and I am not sure how advanced it is and what is connected.

Ok, but don't go asking compromising questions.

I did not know these days, if by the click of a button important records can be downloaded within seconds from country to country for new residents.

I think you are getting a little too paranoid. They need to have a good reason to be on your case.  Just don't go giving.  Don't be a sitting duck.

Or annual stuff if you know what i mean.

Get used to file your stuff, save receipts, be organized. 

My main concern is to just fly low and have no issues.

Makes sense.

The most important thing in my example was that there was no bank account for Brazil.

Not a deal breaker. If you must, then you will have one. 

And would like to add that...
*From what I'm thinking that all is cool if just wanting to use credit cards from USA to buy stuff at grocery stores or eat out,
*And also maybe pulling out some cash in BRL from ATM's here using debit card which might total about 2K in BRL per month or so.
I'm guessing if this is the case then filing stuff is not needed.
One last thing to add - My name now is not on anything in Brazil. No cell phones, no rentals, nothing, esp. not banks...
Only thing I want my name on is with the BR Gov in order to get another PR here (which is easy to get since I'm married to a BR.
-@ExpatUSATravels

And would like to add that...

*From what I'm thinking that all is cool if just wanting to use credit cards from USA to buy stuff at grocery stores or eat out,

*And also maybe pulling out some cash in BRL from ATM's here using debit card which might total about 2K in BRL per month or so.

A: Yes you can.  Most of Brazilian taxes are pulled on consumption, not on income. So by the time you paid your tab. there is a lot of built in Taxes in what you paid for.   Don't forget certain Banks will charge you points for the exchange rate. You can get nickeled and dimed from this.

I'm guessing if this is the case then filing stuff is not needed.

A : It depends on how much you draw here. On money deposited here.  Up to R$ 2,000/month, no need to report.  You may report it, but no taxes are taken out.  At the store or restaurant, when they ask you for the Nota Fiscal, get the recept, but no CPF tied in it. That's how the loop back into your data. B y building a spending profile.  The CPF thing ( in Sao Paulo is the Nota Paulista ) is supposed to be a cash back rebate program to enforce retailers to actually report all receipts. Tax evasion here is huge. And as I said, I am not the one to let them know my spending patterns, as frugal as they might be. So get the receipt, and eschew the rebate.

One last thing to add - My name now is not on anything in Brazil. No cell phones, no rentals, nothing, esp. not banks...

A: Keep it that way. If you need a car, make sure it is imperative.  Taxicab fares here are cheap, and you can rent a vehicle  when you really needed it.  Enjoy frugality and the beauty of of being free from possessions for a change.  Sao Paulo's public transportation has been dicey lately with urban violence post pandemic, so if you are in SP, get car fare if your haul is a long one.

Only thing I want my name on is with the BR Gov in order to get another PR here (which is easy to get since I'm married to

okl

a BR.

It's good to be hitched, but always control the outflows. Women here can be spendthrifty with hubby's money.

@rraypo

This is interesting. I would like to speak with your accountant.

So if holding a permanent residency card in Brasil and getting paid a 1099 at the end of year from earnings generated for sales from a popular online website in USA for example, while living in Brasil does Brasil check to see if there was foreign income earned?

Brasil does not have a tax treaty with USA.

And noticed that they tax on world wide income if resident in Brasil and living in Brasil.