When declaring the purchase or investments in dollar In Income Tax, taxpayers must be aware of certain specificities of foreign currency.
You international investments in dollars They are a highly sought after option by Brazilians who want to diversify their portfolio, in addition to escaping some of the Brazil risk, that is, the factors to which the country’s economic scenario is exposed.
As a currency more consolidated by world economies, invest in dollars or buy dollar These are often options adopted by Brazilians. In addition, the purchase of currency can also be used for travel, using cash, prepaid cards or travel money.
To get it right IRPF 2024 declarationbelow you can check out expert tips on how to declare dollars in Income Tax.
Purchase of dollars in Income Tax
When traveling to the United States and even other countries, it is normal for the dollar (USD) is the most used currency, given its wide trading in the world.
According to experts at Travelex Bank, the first bank exclusively for foreign exchange operations regulated by the Central Bank of Brazil, the main modalities involving foreign currencies that must be presented in the income tax declaration are: currency in stock and balance in bank account abroad.
For the declaration of dollar purchasein cash or by card (prepaid or travel money) – adopted for travelers who gradually acquire dollars to use on a trip, as a financial reserve or to sell in the future – the taxpayer can access the IR application or My Income Tax or the website and go to “Profile” => “Documents” => “IR Declaration” => “Current Account” => “Fiscal year 2023” “IRPF 2024 (calendar year 2023)”.
Next, you must follow the steps below:
- Select the “Assets and Rights” tab;
- Choose Group 6 (demand and cash deposit) and code 64 (cash – foreign currency);
- Fill out the breakdown form with details of the nature of the currency (dollars, in this case) and the total quantity;
- Inform the institution’s CNPJ, if it is on a prepaid card;
- Enter “Status until 12/31/2023”.
For those with a balance in a bank account abroad, you must fill in the category that requires declaring the amount you have allocated to an institution outside Brazil. The bank or brokerage company where the service is contracted usually indicates in a didactic way how to extract the correct information to include in the IR.
The taxpayer must classify the value in the “Assets and Rights” form, however, only if the value in dollars, or another unit, exceeds the range of R$140.00.
How to declare investments in dollars in IR?
Below are the main tips for declaring dollar investments were provided by Nomad, a digital account startup and foreign currency applications.
Income Tax legislation underwent some changes in December 2023, which will now be applicable to events occurring only from January 1, 2024.
According to law 14,754 (sanctioned on December 12, 2023), the taxation of financial investments abroad from January 1, 2024, also called “GO Outdoor” will be determined on an annual basis.
To do this, the following will be taken into account:
- The consolidation of all income, gains and losses recorded throughout the calendar year;
- The application of a fixed rate of 15% on the net balance determined on December 31st of each year, if positive.
“The big change for the individual investor refers to the way in which IRPF is calculated when receiving income or selling investments, which were previously calculated in Carnê-Leão and in the Capital Gains Program (monthly calculation), respectively” , explains Nomad specialist.
From January 1, 2024, the investor must consolidate income and gains in a single Income Tax Declaration Form that will be created by the Federal Revenue Service in the Declaration that will only be presented in 2025 (referring to the calendar year 2024 – calculation Yearly).
Additionally, in this Form, it will also be possible to offset losses incurred by investors when selling assets during the year, as well as the tax paid abroad by the investor.
Regarding income and gains from financial investments abroad calculated from the aforementioned date (01/01/2024), the individual consumer can evaluate the convenience of opting to update the value of their financial investments in dollars abroad to its market value on 12/31/2023, by collecting income tax at a reduced rate of 8% on the difference between the market value of the assets on that date and their acquisition cost.
To do so, the investor must:
- Select the assets for which you intend to opt for the update, considering their market value on 12/31/2023 (as evidenced in the account statement);
- Convert the market value of financial investments abroad that are intended to be updated according to the sales ptax of 12/29/2023 (4.8413);
- Exercise the option in the manner and within the period established by the Federal Revenue of Brazil, which will provide a specific declaration for this purpose; collect income tax at the rate of 8% on the difference between the updated market value of the asset and its acquisition cost until 05/31/2024;
- Include in the DIRPF Assets and Rights Form the amounts taxed as a result of exercising the option as an additional acquisition cost of the respective updated asset.
It is worth noting that although the Law is in force, some operational aspects will still be detailed by the Brazilian Federal Revenue Service in a Normative Instruction.
More details for IRPF 2024 declaration
If you still have any doubts, the Brazilian Federal Revenue website stands out as the main official reference, with detailed and up-to-date information on the topic.
Through the portal, taxpayers will find clear instructions, specific forms and step-by-step guides that facilitate the process of declare dollar purchase and other points in the IR.
After these explanations, taxpayers should find it easier to file their tax return. dollar in Income Tax and comply with your tax obligations correctly and efficiently. The document can be delivered to the Federal Revenue until May 31st.
