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The natures of international remittances and their taxation

1 de August, 2019

The natures of international remittances and their taxation

Reading: 3 min

Brazilians who want to invest, live or study in Portugal should pay attention to the time to declare your shipments to the country. There is a lot of information available on the Internet, which ends up confusing the minds of many.

In partnership with Online ShippingIn this article, we highlight the nature of remittances that are most used by our clients, to avoid tax problems, such as income tax returns. Nature is how the Central Bank classifies the purpose of a remittance. It is from this that we evaluate which taxes are levied on the operation, for example.

1 – Nature of shipments made by individuals:

In this topic we will deal with the shipping natures of individuals from Brazil to Portugal.

If you have an account in Portugal and send money from Brazil to there, the nature used is Availability Abroad. All transfers to accounts with the same ownership, regardless of country, are registered in this category.

In turn, nature Resident Maintenance is used when you send money to the account of direct relatives (children, wife, husband), or to someone who lives abroad but is financially dependent on a resident of Brazil.

Other natures are indicated in many very literal cases, for example:

  • Payment for Courses Abroad
  • Medical Expenses Abroad
  • Buying a Property Abroad
  • Rent Abroad
  • Investment in Brokerage Houses

Those who invest in real estate in Portugal and need to pay contractors or interior designers, for example, should use nature”.Payment for Services Abroad“to pay off services hired by you.

Finally, we have nature.”Money Donation Abroad.”These are transfers to non-profit institutions or transfers between individuals who have no family ties, such as friends.

2 – Nature of Receipts from Portugal in Brazil for Individuals

If you have an account in Brazil and receive money sent from your account in Portugal, the nature to be used would be a “Resident Maintenance in Brazil.” as well as the sending, works for receipt between accounts of the same ownership.

On the other hand, pThose who work for companies in Portugal but live in Brazil can receive money from abroad using nature”.Overseas Salaries” or “International Services.

On the other hand, those who invest in real estate and rent or sell properties can declare ““Selling a Property Abroad. orCapital Gains Abroad.”.

3 – Nature of Shipments from Brazil to Legal Entities in Portugal

In shipments, nature “Availability Abroad“repeats itself. Also, it is possible that your company hires third party service, so the option “Payment for Services Abroad“is necessary. At last, we have “Capital Increase Abroad“used in transfers to increase share capital in foreign companies.

4 – Nature of Receipts from Portugal in Brazil for Legal Entities

There are two natures to available receipts for corporations: International loanWhen international transfers of loans to Brazilian companies are made, they carry this classification.

International Bank TransferInternational remittances: they are similar to the availability abroad, with the difference that they are international remittances of values between legal accountsin the same ownership.

What fees are applied in each nature?

All international transfers (from Brazil to abroad) are levied on IOF (Tax on Tax Operations)This varies according to the ownership of the beneficiary.

In transfers of the same ownership, such as Availability e International Bank Transfer, o IOF applied is 1,1%.

Already for third-party account, o IOF is 0.38%..

Nature of the ShipmentFTT applied
Availability Abroad1,1%
Resident Maintenance0,38%
Payment for Courses Abroad0,38%
Medical Expenses Abroad0,38%
Buying a Property Abroad0,38%
Rent Abroad0,38%
Investment in Brokerage Houses0,38%
Payments for Services Abroad0,38%
Money Donation Abroad0,38%
Resident Maintenance in Brazil0,38%
Overseas Salaries1,1%
International Services0,38%
Sale of Property Abroad1,1%
Capital Gains Abroad1,1%
Availability Abroad1,1%
Payment for Services Abroad0,38%
Capital Increase Abroad1,1%
International Loan0,38%
International Bank Transfers1,1%

International remittances are also subject to withholding income tax. The natures Payment of course abroad e Medical expenses abroad are exempt from withholding income tax. The others may have rates between 15% and 25%.

It is necessary to be careful and evaluate the correct nature, indicating it so that not only are applied wrong rates increasing the cost of shipping, but also that can avoid more serious problems with the Federal Revenue.

Author: Wesley Satu
Online Shipping

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