Transfers abroad are now taxed at rates above 2%.

Transfers in foreign currency abroad, carried out by natural or legal persons domiciled or headquartered in national territory, within the scope of service provision contracts, technical assistance, consultancy and management, capital operations and unilateral transfers, become taxed at a rate of 2.5% for individuals and 10% for legal entities, from January 1, 2024.

Maquento Domingos

The basis for calculating the Special Contribution on Foreign Exchange Operations (CEOC), informs the AGT, will be the amount in national currency subject to the transfer, “regardless of the currency used”, on which a 10% rate must be applied in cases of transfers made by legal entities and 2.5% in cases of transfers made by natural persons.

Transfers intended for health and education expenses will be excluded from the regime, “as long as they are made directly to the respective health and educational institutions, as well as the repatriation of dividends or loaned capital, including the respective interest”.

The AGT also informs that the economic and financial burden of the CEOC will fall on the natural or legal persons ordering the transfer and that the obligation to withhold, settle and deliver the tax will fall on the financial institutions at the time of processing the transfer abroad.

The obligation for financial institutions to proceed, from January 1, 2024, withholding the CEOC, establishing the payment of a fine to the institutions in case of non-compliance.