Post by afifatabassum on Mar 13, 2024 3:27:21 GMT
Bad news for those who work with foreign companies or who for some reason receive money from across borders. From February 1st of this year, a rule officially came into force that obliges credit institutions to withhold a quota equal to 20% of the amounts relating to bank transfers entering our country. The funny thing (if there was nothing to cry about) is that practically no one seems to know anything about it about this matter. We in the editorial team tried to call the bank this morning asking for clarification on the matter, but the employees literally ''fell from the clouds'' and simply said that they will find out and let us know. Il Sole 24 Ore reports the news which seems to leave no shadow of doubt.
This is article 4, paragraph 2, Legislative Brazil Phone Number Decree no. 167/90 amended by law 97/2013, which simply comes into force as expected. The 20% withholding appears to be a down payment and can be redeemed by justifying, in some way, the origin of that money. There can essentially be 2 cases: 1) Foreign transfer to a private individual: in this case the citizen will have to demonstrate the nature of the money received. If it is income of some kind then that 20% will go towards an advance on taxes to be paid the following year. If it is money of another nature (a relative sending money or the return of a deposit or loan etc ...) then he will have one year to request its return. Or (but it is not clear), if he acts immediately he could also block the 20% withdrawal. 2) Foreign transfer to a company or to a VAT number: in this case you will have to declare, also with a self-certification, that you usually work with foreign companies; 20% will be retained and considered a ''deposit'' for the following year's taxes.
To whom do you make these statements? Right to the banker on duty who, for now, seems to literally fall from the tree and know nothing about it! The worrying thing, in fact, is that for this rule there is no clear plan to manage it and both banks, accountants and the Revenue Agency branches themselves are somewhat disconcerted and undecided about what to do. The only purpose that such a risky law seems to have is to allow the state, perpetually bankrupt, to raise some money by having companies that work with foreign states pay additional advance taxes. Even if ''officially'' the aim should be to verify the nature of the money coming into our country. Obviously, penalizing incoming capital rather than outgoing capital can only cause further damage to our already poor economy. If anyone knows more about it and wants to comment.
This is article 4, paragraph 2, Legislative Brazil Phone Number Decree no. 167/90 amended by law 97/2013, which simply comes into force as expected. The 20% withholding appears to be a down payment and can be redeemed by justifying, in some way, the origin of that money. There can essentially be 2 cases: 1) Foreign transfer to a private individual: in this case the citizen will have to demonstrate the nature of the money received. If it is income of some kind then that 20% will go towards an advance on taxes to be paid the following year. If it is money of another nature (a relative sending money or the return of a deposit or loan etc ...) then he will have one year to request its return. Or (but it is not clear), if he acts immediately he could also block the 20% withdrawal. 2) Foreign transfer to a company or to a VAT number: in this case you will have to declare, also with a self-certification, that you usually work with foreign companies; 20% will be retained and considered a ''deposit'' for the following year's taxes.
To whom do you make these statements? Right to the banker on duty who, for now, seems to literally fall from the tree and know nothing about it! The worrying thing, in fact, is that for this rule there is no clear plan to manage it and both banks, accountants and the Revenue Agency branches themselves are somewhat disconcerted and undecided about what to do. The only purpose that such a risky law seems to have is to allow the state, perpetually bankrupt, to raise some money by having companies that work with foreign states pay additional advance taxes. Even if ''officially'' the aim should be to verify the nature of the money coming into our country. Obviously, penalizing incoming capital rather than outgoing capital can only cause further damage to our already poor economy. If anyone knows more about it and wants to comment.
