Normative Instruction RFB No. 1,704, of 2017, regulated the new deadline for joining the RERCT – Special Regime for Foreign-Exchange and Tax Regularization, in accordance with Law No. 13,428, of 2017. According to the Federal Revenue Service (Receita Federal), the membership may be carried out by submitting the Declaration of Foreign-Exchange and Tax Regularization (Dercat) and paying the tax and fine by July 31, 2017.
Known as the Repatriation Law, it allows the regularization of resources, assets or rights remitted to or held abroad or repatriated by persons resident or domiciled in the country, which have not been declared or which have been declared incorrectly.
The greatest innovations brought by the new program, according to the Federal Revenue Service, are:
I – The possibility of estates opened up to the date of membership entering the RERCT directly (previously, only estates opened up to the date of the taxable event could enter).
II – The broader scope of the extinguishment of the punishability of pardoned crimes (now, the benefit extends to the date of membership, fully pardoning continuing crimes).
III – The possibility of correcting the amounts declared in the program which, exclusively for this second stage, will not result in expulsion from the special regime.
IV – The new temporal horizon of the program: now, the reference date for regularization is June 30, 2016. Accordingly, it is in relation to this date that the taxpayer must verify the resources, assets and rights it held in order to declare them to the RERCT.
V – The new exchange-rate date for converting the amounts in foreign currency for the program: together with item IV, the exchange rate to be used will be that of June 30, 2016.
VI – The administrative fine with a rate of 135% on the amount of the tax. The rates on the declared amount are, therefore, 15% of income tax (IR) plus 20.25% of fine.
VII – The transfer of 46% of the value of the fine to the states, the Federal District and the municipalities.
VIII – The possibility for taxpayers who declared to the previous RERCT to supplement their declarations in order to enjoy the benefits of this new stage.
Much of the text of the first deadline (Normative Instruction RFB No. 1,627, of 2016) was transcribed into the new one, to assist taxpayers and facilitate the understanding of the rules.
Access the Law here.
(Source: RF)
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