RERCT 2024 - New Possibility for Currency and Tax Regularization
The enactment of Law No. 14.973/2024 resulted in the reopening of the Special Regime for Currency and Tax Regularization (RERCT-General), allowing taxpayers to regularize assets held in Brazil or abroad that were not previously declared to the Federal Revenue Service, provided they can be proven to have lawful origins. The international context, combined with increasing pressure for fiscal transparency, required Brazil to adapt to global standards in the fight against tax evasion and money laundering, as established by organizations such as the OECD. This context demonstrates that the law not only addresses domestic fiscal interests but also seeks to align Brazil with more rigorous international practices.
To adhere to the RERCT-General, taxpayers must declare assets held as of December 31, 2023, and pay an income tax of 15% on the value of the assets, plus a 100% penalty on the tax due, resulting in an effective tax burden of 30%. Although this rate may seem high, it is actually a beneficial alternative compared to the penalties applicable in cases of tax audits outside the regularization regime, which can reach 150% of the tax due, in addition to other legal and criminal consequences. It is worth noting that the deadline for joining the program ends on December 15, 2024, making this regularization a unique and temporary opportunity for taxpayers seeking fiscal compliance.
The Normative Instruction RFB No. 2.221/24 complements Law No. 14.973/2024 by detailing the necessary procedures for adhering to the regime. It specifies the types of assets that can be regularized, covering a wide range of items, from bank deposits, investment fund shares, and insurance policies to real estate, vehicles, and intangible assets such as trademarks and patents. The Normative Instruction also reinforces the requirement that the single regularization declaration must be submitted via the Dercat system on the e-CAC of the Federal Revenue Service. It defines that the conversion of foreign currency values must be based on the official exchange rate of the Central Bank of Brazil as of December 31, 2023, ensuring uniformity in calculations and preventing future disputes regarding asset valuation.
One of the main advantages of the RERCT-General is the legal protection offered to taxpayers who join the program. Those who comply with all the requirements established by law and the Normative Instruction will be exempt from criminal liability for tax crimes, money laundering, and other offenses related to the regularized assets, providing additional security for those seeking to legalize their fiscal status. However, it is crucial to highlight that the origin of the assets must be lawful, and the regularization of assets originating from illicit activities will not be accepted, potentially aggravating penalties if irregularities are detected.
Another relevant aspect of the Normative Instruction is that it provides for the possibility of regularizing assets even for those who were not residents in Brazil at the time of the publication of Law No. 14.973/2024, as long as they were residents or domiciled in the country on December 31, 2023. This provision broadens the program's scope, allowing a larger number of taxpayers to benefit from the regularization opportunity.
Adherence to the RERCT-General requires a careful and well-planned decision, and it is highly advisable that interested parties seek the support of lawyers or accountants specialized in tax law to ensure the correct presentation of assets and compliance with all legal requirements. The issue of proving the lawfulness of assets remains a sensitive point. The taxpayer must demonstrate that the assets and resources being regularized have lawful origins, presenting detailed documents and information that prove acquisition through legal means. Tax authorities may require additional proof, especially if there are indications of irregularities. As observed in previous editions of the regime, the difficulty lies in presenting documents that attest to the lawful origin of resources, particularly for assets acquired a long time ago or in countries with less transparent banking systems.
In summary, Law No. 14.973/2024 and Normative Instruction RFB No. 2.221/24 represent a significant opportunity for taxpayers in an irregular situation with the tax authorities to regularize their assets, avoiding more severe consequences in case of future audits. The program offers favorable conditions and greater legal security but requires that interested parties be attentive to all established requirements and deadlines, under penalty of losing the benefits offered by the regime.
Law 14.973/24: Tax Benefits and Risks in Updating Real Estate Values
Law No. 14.973/24 also introduces a possibility for updating real estate values, aiming to offer tax benefits, but it presents nuances that must be carefully evaluated. The tax advantage includes the application of reduced rates: 4% for individuals and 10% for legal entities (6% for Corporate Income Tax and 4% for Social Contribution on Net Income), which are significantly lower than traditional rates. However, Article 8 of the law establishes a condition: to fully enjoy the benefit, the property must be held for 15 years. If sold before this period, the benefit is lost, and proportional taxation is applied.
Additionally, the progressive scaling of the tax benefit requires the owner to retain the property for the entire period to optimize the advantage. This time frame can be a barrier for those seeking flexibility or intending to sell the asset in the short or medium term, affecting entrepreneurs and investors who need liquidity or are aiming for asset reorganization.
The decision to update the property value depends on an analysis of long-term succession and financial planning, considering the possibility of future updates and the incidence of taxes on capital gains. Therefore, it is advisable to seek professional guidance to assess whether the update meets the objectives of asset management and to avoid potential pitfalls resulting from the 15-year retention requirement imposed by the law.
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