Permanent Departure (Saída definitiva) from Brazil: What You Need to Know

The Permanent Departure from Brazil, also known as "saída definitiva", is a formal tax and administrative procedure carried out with the Brazilian Federal Revenue Agency (Receita Federal) to inform that an individual has permanently left Brazil. This process is important for Brazilians living abroad who wish to regularize their tax situation and avoid ongoing fiscal obligations that no longer apply once they reside outside the country. Although it may seem simple, it involves specific steps and deadlines.

The main benefit of completing the "saída definitiva" process is the removal of tax residence obligations in Brazil. After submitting the declaration (Declaração de Saída Definitiva), the taxpayer is no longer required to file the annual income tax return as a resident and will instead be treated as a non-resident for tax purposes. This helps prevent double taxation and potential issues with the Brazilian tax authorities regarding income earned abroad.

However, there are important considerations before making this decision. The permanent departure can affect investments and income sources in Brazil, such as rental income, financial investments, or business activities. Once the process is completed, any income from Brazilian sources will be subject to specific non-resident taxation, which may have different rates compared to those applied to residents. Therefore, understanding the economic and legal implications is essential before proceeding.

It’s also worth noting that there are deadlines for notifying and formalizing the departure with the tax authorities. Missing these deadlines may lead to penalties or future complications. The required documentation includes both a formal notice of departure and the final declaration detailing all assets, rights, and income held up to the date of departure.

GGLR Accounting serves many Brazilian individuals in Canada and understands the importance of clarifying these matters. However, GGLR Accounting does not offer advisory services for this process. Our role is to provide general information and refer you to a qualified professional in Brazil who can assist with all the necessary steps and provide personalized guidance.

If you are considering making your permanent departure from Brazil and wish to receive full support, please contact GGLR Accounting at info@gglraccounting.com. We will be happy to connect you with an experienced professional in Brazil who can guide you through each stage and ensure the process is completed correctly and securely.

Implications on the Canadian Side

It’s important to remember that, regardless of whether an individual has officially completed the permanent departure process in Brazil or not, Canada will always recognize taxes paid in Brazil as a credit to reduce or even eliminate Canadian taxation on Brazilian-source income. This is possible thanks to the tax treaty between Brazil and Canada, designed to prevent double taxation. As a result, any income generated in Brazil and properly taxed there can have its corresponding tax credit recognized in Canada, providing fair and balanced tax treatment to the taxpayer.

For comprehensive assistance in preparing your Canadian tax return including reporting your Brazilian sources of income and taking advantage of the taxes paid on this income, request the preparation of your Canadian Tax Return with us. Check full details about this service here.