It’s Tax Time

It’s that time of year again - tax season. In the United States, April 15th is the date that everyone dreads because taxes are due. This year, as a result of Covid, the IRS has extended the federal income tax filing deadline by a month. Taxes are now due on May 17, 2021.

The yearly filing date for personal income taxes in Brazil is normally April 30th. Last year, however, the deadline was extended to June 30th. And this year, it seems taxpayers may get some additional time as well.

The Chamber of Deputies (Câmara dos Deputados) has proposed extending this year’s filing deadline to July 31st. However, the extension still requires approval by the Senate and signoff by the president. Considering the impact of the pandemic, it’s expected the change will be approved.

Filing taxes in Brazil is a real chore, so every extra day (and hour) is a gift. According to the World Bank, it takes an average of 1,500 hours for a medium-size company to file taxes in Brazil each year. Compare that to 175 hours in the United States. There are only a handful of countries that rank worse than Brazil in terms of paying taxes.

If you qualify as a tax resident - whether because of your visa status or because you stayed too long in Brazil - make sure you file on time. Not all deadlines have changed, so you’ll want to stay on top of your filings (or at least make sure your accountant is on it).