Tax return

[Red Herring]

Hi Folkes,
New on here so please treat me gently...

We bought a small granga in Paraiba a few years back and have been really pleased with it. We only get out for a few weeks each year but it's paradise away from home and it's certainly looking like a good investment at the moment.

We had to get CPF numbers when we bought it etc but I've had no contact with Brazilian "authorities" since. We obviously pay the electricity and our caseiros wages but we've never done a tax return or such like. I noticed reading through this forum that if the property is worth more than R$ 3k we are supposed to complete a tax return each year? I suspect our property is now worth a fair bit more than this so maybe I should be doing something.

Can someone give me a steer as to if i should be bothered, if so how do I go about it and are there likely to be any repercussions for past years?

Many thanks,
RH

 

[Erik C.]

When you don't do a tax return your CPF will become defunct, to get it working again is a nightmare. Find an accountant to do your return for you each year, not expensive and it will save you a lot of trouble.

 

[debzor]

Hi Folkes,
New on here so please treat me gently...

We bought a small granga in Paraiba a few years back and have been really pleased with it. We only get out for a few weeks each year but it's paradise away from home and it's certainly looking like a good investment at the moment.

We had to get CPF numbers when we bought it etc but I've had no contact with Brazilian "authorities" since. We obviously pay the electricity and our caseiros wages but we've never done a tax return or such like. I noticed reading through this forum that if the property is worth more than R$ 3k we are supposed to complete a tax return each year? I suspect our property is now worth a fair bit more than this so maybe I should be doing something.

Can someone give me a steer as to if i should be bothered, if so how do I go about it and are there likely to be any repercussions for past years?

Many thanks,
RH

RH - you only have to complete a tax return if your property is DECLARED as having a value in excess of R$300,000, not R$3k. How are you paying the taxes for the caretaker - I imagine you have someone doing this? Then you should have no problems - just check on your escritura for the declared value...

 

[Red Herring]

Sorry, yes it's worth more than 300k, but that's now. Is the declared value what we paid for it or todays value? Re the caseiro I have someone pay his wages and keep his fundo garantia up to date, I guess it wouldn't be hard to get them to submit a tax return for me if needed.

 

[debzor]

Sorry, yes it's worth more than 300k, but that's now. Is the declared value what we paid for it or todays value? Re the caseiro I have someone pay his wages and keep his fundo garantia up to date, I guess it wouldn't be hard to get them to submit a tax return for me if needed.

The declared value is whatever is in your escritura publica when you bought it. This will not increase until you sell, no matter what value you apply to it yourself.

 

[Red Herring]

Excellent, in that case it looks like I'm OK. Thanks for the speedy replies.
Cheers, RH