The Federal Revenue of Brazil published, on March 13, the Normative Instruction (IN) 2.180/2024, which establishes new guidelines regarding the taxation of investments made abroad. This regulatory milestone sets a specific period for investors to regularize their assets abroad, offering a reduced Income Tax (IR) rate, a move that aims to encourage adherence to the program of fiscal update and transparency.
Investors have an opportunity window, starting from March 15 to May 31, to regularize their assets abroad. During this period, it will be possible to pay IR at a reduced rate of 8%, in contrast to the standard rate of 15%. This measure aims to facilitate the fiscal regularization of resources held outside the country, with the possibility of repatriating the amounts destined for the tax payment, provided they are specifically used for this purpose.
Procedures and Tools for Adherence
The Federal Revenue also announced the launch of an electronic program, named Update of Assets and Rights Abroad (Abex), which will serve as the platform for adherence to the regularization program. This electronic system seeks to simplify the process of declaration and regularization, following the precedent set by the Declaration of Exchange and Tax Regularization (Dercat) of 2016.
Highlighted Aspects of the New Rules
Virtual Assets: Taxation will only apply when virtual assets are considered financial assets. Movements between Controlled Entities: Transfers of capital between direct and indirect controlled entities will not have tax effects.
Taxation of Insurance Policies: Differentiation between policies that operate as investment current accounts, which will be considered controlled entities with profit taxed annually, and market policies, treated as normal financial applications.
Tax Credit for Offshores: Possibility to credit in Brazil the tax paid on behalf of offshores under a fiscal transparency regime.
The IN aims not only at the regularization of assets abroad but also at promoting legal security for investors. With the new rules, the fiscal past is resolved, allowing investors to proceed under a new regime without the need for additional controls. The regulation also facilitates succession planning and offers protection against future changes in tax legislation. The initiative not only simplifies the adherence and regularization process but also ensures long-term benefits, such as exemption from future exchange rate variation on accumulated profits and ease in succession planning.