Brazilian Legal Update – New Asset Repatriation Act

President Michel Temer sanctioned last Thursday (March 30, 2017), Law no. 13.428/2017, amending the provisions of Law no. 13.254/16, which provides for the “Special Exchange and Tax Regularization (RERCT, in the Portuguese acronym) on assets, resources or rights of licit nature not declared or inaccurately declared, remitted or maintained abroad or repatriated by Brazilian residents or individuals and/or legal entities domiciled in the country”.

Under the provisions of this new Law, the term for repatriation and regularization of such undeclared or inaccurately declared assets maintained by Brazilian residents or domiciled individuals abroad will reopen for 120 (one hundred and twenty) days as of enactment of the due regulation by the Brazilian Revenue Services (Receita Federal). During such reopened term, any person who may benefit from RERCT is entitled to declare voluntarily his/her patrimonial status on or before June 30, 2016, on which tax and penalties will be levied.

Such regulation by Receita Federal shall be enacted within 30 (thirty) days as of the sanction of the Law.

Those individuals who benefited from RERCT until October 31, 2016, may file a complementary declaration, under which they shall pay the due tax and penalty on the complementary amount declared and observe the newly fixed date for currency conversion.

Emerenciano, Baggio e Associados – Advogados is at your disposal to provide any additional information on RERCT and to help declaring any assets under RERCT for repatriation purposes.

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