Law No. 14,973, published on of September 16, 2024, established a new program for disclosure of lawful resources, assets, rights, or resources of held abroad and not declared or incorrectly declared: the New Special Regime for General Foreign Exchange and Tax Regularization, called RERCT-Geral.
Individuals or legal entities residing or domiciled in Brazil may adhere.
The regularization includes resources located in Brazil or abroad as of December 31, 2023, of lawful origin, which have never been declared or were incorrectly declared in previous years (e.g., financial assets, insurance policies, loans, foreign exchange operations, equity interests, real estate, vehicles, aircraft).
The (cumulative) conditions for adherence are as follows:
(i) DERCAT: submission of a declaration (DERCAT) of the irregular assets’ patrimonial situation as of December 31, 2023, or, if there is no balance or ownership of assets on this date, a description of the acts performed in previous tax declarations;
(ii) Payment of IRPF as capital gains (15%) on the actual value of the assets to be regularized, determined by converting the foreign currency value to reais, using the selling exchange rate set by the Central Bank of Brazil as of December 31, 2023;
(iii) Payment of a fine of 100% on the IRPF assessed.
The final deadline is December 15, 2024.
If the conditions are met, the tax debts initially owed to the tax authorities will be forgiven, and a 100% reduction of late payment fines will be granted.
