Law No. 14,973/2024, concerning the amnesty program for assets held in and/or outside Brazil and non-declared to the Brazilian Federal Revenue and to the Brazilian Central Bank (“RERCT 2024”), was published on September 16th, 2024.
It presents taxpayers with an opportunity to disclose ownership of undeclared assets held outside the country with the benefits of (i) reduced taxes and penalties, and (ii) a general amnesty for criminal purposes.
The amnesty program will also be applicable to assets held outside the country or already remitted to Brazil with a lawful origin.
Brazil’s Federal Revenue has already issued regulations detailing the application and payment of the income tax due.
According to the terms of the RERCT 2024, taxpayers shall submit an application by December 15th, 2024, disclosing assets held on or before December 31st, 2023 (including previous transfers and transactions).
The Income tax payable on declared assets is 15% plus a penalty of 100% of such amount (i.e. a combined tax and penalty burden of 30%) and shall be calculated on their market value.
The novel program is similar with those implemented in 2015 and 2016.
