Brazil's Chamber reduces Income Tax on money sent abroad

Thursday, 23 of Jun 2016
By Jaqueline Zavoneli

On the proposal approved, the rate rises from 25% to 6% on the overseas deliveries

The Brazilian House of Representatives approved last week a temporary measure that reduces the income tax on money sent abroad for personal expenses. The text now goes for consideration of the Senate. The proposal suggests that the reduction could be valid until December 31, 2019.

On the proposal approved, the Income Tax rate rises from 25% to 6% on deliveries to pay personal expenses, up to the limit of R$ 20,000 per month, in tourism and business travel. The reduction also will apply to operators or travel agencies, but to the limit of R$10,000 per passenger. To become law, the reduction must be approved by Congress.

The temporary measure is says that are free from Income Tax overseas deliveries intended for educational purposes, including the payment of registration fees at conferences, as well as sending money to cover medical expenses abroad.

The same goes for deliveries made by individuals residing in the country to cover medical and hospital expenses for health care abroad, from the sender or their dependents.