It’s Time to Pay Taxes

It’s that time of year again. You may have just filed your US taxes, but don’t forget to file your personal income taxes in Brazil too. The deadline is quickly approaching.

Each year the deadline for filing changes slightly, but it’s usually toward the end of April. For the fiscal year 2021, the original deadline was April 29, 2022. However, due to COVID, the government extended the deadline to May 31, 2022.

Year after year the number of tax returns that get filed in Brazil increases steadily. In 2018, for example, the number was less than 30 million. This year, the government expects more than 34 million tax returns to be filed.

Beginning this year, taxpayers can pay their taxes using Pix. It’s just one way the federal government is making it easier for taxpayers to pay while simultaneously making it easier for tax authorities to collect. Pix can also be used to receive tax refunds.

Perhaps you’re thinking this is all interesting yet irrelevant to you. But what if the Brazilian government thinks you owe taxes yet you didn’t even realize it? It happens…a lot.

Even if you’re on a tourist visa, you could be subject to income tax in Brazil. It can be as simple as being in the country too many days during a rolling 12-month period. And worst of all, if you’re considered a taxpayer, you’ll be taxed on your worldwide income.

So stay informed and plan ahead. A little preparation could save you a lot of cash.