Brazil: Tax And Criminal Amnesty Program For Non-Declared Assets

Law no. 13.254/2016 concerning the amnesty program for assets held outside Brazil and non-declared to the Brazilian Federal Revenue ("RFB") and to the Brazilian Central Bank ("BACEN") was published today (January 14, 2016). 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. This is an unique opportunity that will not be presented again so soon.

To put this measure in perspective, Brazilian tax authorities are currently engaged in efforts to improve cross-border exchange of information. In 2015, Brazil started the automatic exchange of information with the United States, receiving, according to the RFB, data of approximately 25,000 bank accounts held by Brazilians in that country. In addition, in 2018, Brazil will start the automatic exchange of information with more than 60 countries that signed the Common Reporting Standard ("CRS"), providing and receiving information regarding the years of 2016 and 2017, as well as the following years.

According to the new law, the amnesty program will be applicable to assets held outside the country or already remitted to Brazil with a lawful origin. The lawful origin must be proved through evidence of origin. The President vetoed the possibility of including in the amnesty "jewelry, precious stones or metals, works of art, antiquities with historic or archaeological value, pets and genetic material for animal breeding".

The assets included in the amnesty program must be recorded in the name of the taxpayer, a trust, a foundation or a pass-through entity; or be kept by an individual or a company, with legal personality or not, for the custody, deposit, investment, possession or property on behalf of the beneficial owner, his representative or agent. Otherwise, the assets may not be included in the amnesty program (for example: assets held in the name of a relative, as if he/she owned them, without any formal agreement of deposit or custody).

To join the amnesty program, the applicant will be required to:

(i) Fill out the Amnesty Statement ("Declaração Única de Regularização");

(ii) Amend the Annual Income Tax Return ("Declaração de Ajuste Anual" – "DIRPF") of the calendar year 2014 to include the new information;

(iii) Amend the Report of Foreign Assets ("DCBE") of the calendar year 2014;

(iv) Have documents that prove the lawful origin of the declared assets, to be presented to the tax authorities when required to do so;

(v) For financial assets totalling more than USD 100,000, request and authorize the foreign financial institution to send information regarding the balance of the assets on December, 31, 2014, to a Brazilian financial institution, which will inform that to the RFB; and

(vi) Pay Income Tax ("IR"), at a 15% rate on the declared assets amount, plus a penalty of 100% of such amount (i.e., a combined tax and penalty burden of 30%).

The calculation of the amounts to be declared will be based on the market value of the assets on December, 31, 2014.

The conversion of the foreign currency to the U.S. Dollar, and from the U.S. Dollar to Brazilian Reais, will also be carried out by using the exchange rate of December, 31, 2014. Therefore, the substantial appreciation of the U.S. Dollar against the Brazilian Real in 2015 will not be included in the calculation of the IR.

Compliance with all the amnesty program's conditions extinguishes the liability for crimes related to tax evasion (evasion, forgery of documents and use of forgery document to evade, false representation to mislead or misinform in the asset statement, and money laundering when the object of the crime is an asset, right or amount derived, directly or indirectly, from the tax evasion).

Taxpayers that are public officials, as well as their spouses or relatives, may not join the amnesty program.

The deadline to join the amnesty program will be 210 days, counted from the enactment of implementing regulations by the RFB. It is expected that these regulations will be enacted in March, 2016.

Those who plan to join the amnesty program must gather the maximum number of documents to demonstrate the origin of the relevant assets. The tax authorities are likely to audit these documents, and the proof of lawful origin is essential to avoid the exclusion from the program.

In case of exclusion from the program, the IR will become due (for individuals, in accordance with the progressive scale, of up to 27.5%), plus a penalty (in the case of tax evasion, the penalty is of 150%) and interest, less the amount already paid under the amnesty program.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions