Atendimento
Customer Service: +55 11 3405-7800
Área do Cliente
  Customer Area    
EMDOC
MENU
x Home About us Differentials Services Offices Contact us

CONSEQUENCES OF FAILURE TO COMPLY WITH TAX RESIDENCE IN THE OFFSHORE MARKET

by Paulo Cruz
 

The RN 06-based offshore work visa allows immigrant professionals to perform work-related activities in Brazilian territorial waters without laboral ties with a Brazilian company. A bearer of this visa type is exempt from fiscal responsibilities at the time of arrival and obtaining a CPF - Cadastro de Pessoa Física is optional. 
 
However, according to Normative Instruction 208/02, any foreign national who spends more than 183 days in Brazil during the same migratory year, consecutively or otherwise, automatically becomes a fiscal resident. Therefore, offshore workers become liable to paying taxes depending on the work schedule in Brazilian territorial waters.
 
If a situation of fiscal residency is observed, the expatriate’s income - even when paid fully abroad - will become retroactively taxable from the date of first entry. Any immigrant who reaches 184 days in Brazil without obtaining a CPF and/or declaring income to Brazilian fiscal authorities will be in an irregular situation.
 
The offshore worker visa, governed by RN 06, is exclusively for boarded expatriates who perform work functions without employment relationship with the Brazilian company. The expatriate holding this type of residence permit is exempt from tax liability upon arrival in the national territory and registration in the Individual Registration is at the discretion of the immigrant and the local company.
 
However, according to Normative Instruction 208/02, regardless of the type of visa applied, every expatriate becomes a tax resident after 183 days spent in the national territory within the same migratory year, consecutively or not. Thus, offshore workers are subject to tax returns and tax payments according to the scale of work in Brazilian waters.
 
If the tax residence is characterized, the expatriate's income taxation will be retroactively from the date of his first entry with the work visa in the country. The expatriate who reaches the 184th day of residence in the country without obtaining a CPF and / or declaring income to the Brazilian tax authorities will remain in a situation of irregularity.
 
Given the dynamism of the offshore market and the seasonal character of the work schedule, it is not uncommon for immigrant workers to find themselves in a situation of irregularity without even being aware of it, which still makes them subject to the same punishments as a Brazilian citizen under these conditions, including a fine ranging from 37.5% to 225% of the amount due, plus the SELIC rate for the period.
 
BACK
CONTACT USCONTACT US
CUSTOMER SERVICE An open channel for suggestions, criticism and praise.
E-mail: emdoc@emdoc.com - atendimento@emdoc.com
Phone.: +55 11 3405-7800
EMDOC - MOBILITY OVERCOMING BOUNDARIES R. Luis Coelho, 308 - Térreo
São Paulo / SP - Consolação - 01309-000
Phone.: +55 11 3405-7800
Fax: +55 11 3405-7868
CUSTOMER SERVICE
An open channel for suggestions, criticism and praise.
E-mail: emdoc@emdoc.com - atendimento@emdoc.com
Phone.: +55 11 3405-7800

R. Luis Coelho, 308 - Térreo
São Paulo / SP - Consolação - 01309-000
Voltar para o topo