Brazil has passed Law No. 13,254, the Repatriation Law, introducing a tax and currency exchange voluntary disclosure and amnesty program (locally known by the acronym RERCT) to stimulate the voluntary disclosure of assets, tangible and intangible, held by Brazilian tax residents remitted abroad; maintained abroad; or repatriated, which, in either case, were not previously reported or, if reported, presented material errors or insufficient information to the Brazilian authorities. This new rule covers all assets, tangible or intangible, remitted and maintained abroad not in accordance with prevailing tax and currency exchange laws, even if the funds have already been repatriated. In this presentation, we summarize some of the key aspects of the Repatriation Law.

1. Brazilian Voluntary Disclosure Program
(commonly known as “RERCT”)

2. 1. Presentation of Law 13.254/2016 and IN RFB 1627
(Special Regime for Regularization Exchange and Tax)
 What is the purpose of the law?
 Who should declare?
 What are the benefits for those who adhere?
 How to join the Voluntary Disclosure Program?

3. 1. Presentation of Law 13.254/2016
(Special Regime for Regularization Exchange and Tax)
What is the purpose of the law?
Who should declare their secret assets?

4. 1. Presentation of Law 13.254/2016
(Special Regime for Regularization Exchange and Tax)
What are the benefits for those who disclose their assets?

5. 1. Presentation of Law 13.254/2016
(Special Regime for Regularization Exchange and Tax)
How to join the Voluntary Disclosure Program?

6. 2. International Outlook
2.1. International experience for Voluntary Disclosure Programs for clients
living in USA, Italy, Germany and Canada (40%)
2.2. Automatic exchange of bank account information: New agreement
between Switzerland and Brazil signed in November 2015

7. 2. International Outlook
2.2. G20 and the end of banking secrecy

8. 2. International Outlook
2.3. Automatic exchange of information: US FATCA and CRS

9. 3. Uncertainties of Law 13.254/2016
3.1. Constitutionality of Law
3.2. Secrecy in the use of information in the context of Law

10. 3. Uncertainties of the Law 13.254/2016
3.1. Constitutionality of the Law

11. 3. Uncertainties of the Law 13.254/2016
3.2. Legal certainty of Law

12. 3. Uncertainties of Law 13.254/2016
3.3. Secrecy in the use of information in the context of Law

13. 4. Participation to RERCT
4.1. Participation to RERCT
4.3. Consequences of joining
4.4. Data and events to declare

14. 4. Participation to RERCT
4.2. Other statements in the RERCT
Individual Legal Person

15. 4. Participation to RERCT
4.3. Consequences of adherence

16. 4. Participation to RERCT
4.4. Assets declaration and time to declare

17. 5. Specific situations
5.2. Exchange variation after 12/31/2014
Dollar rate on 12/31/2014 Dollar rate on 04/27/2016 Exchange variation
R$ 2,66 R$ 3,55 R$ 0,89

18. 5. Specific situations
5.5. Estate and incidence of ITCMD

19. 6. Decision-making processes and accession
6.3. Calculations
Data Values
Amount to be settled in dollars US$ 1.000.000,00
Amount to be regularized in real (quote 02/27/16 - R$ 3,55) R$ 3.550.000,00
Amount to be regularized in real (quote 12/31/2014 - R$ 2,66) R$ 2.660.000,00
Income tax (15% of the amount to be regularized) R$ 399.000,00
Fine (100% of income tax to be paid) R$ 399.000,00
Total payable (Income + Fine) R$ 798.000,00
Effective rate (approx.) 22,50%

20. Thank you!
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