House approves IR reduction of remittance to travel

The rate will be reduced 25% for 6% and shall enter into force on the day 31 December 2019.
16/06/2016 07h07 - Updated 16/06/2016 07h09
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The floor of the House of Representatives passed the night of Wednesday (15), the basic text conversion bill into law of Provisional Measure 713, which reduces to 25% for 6% the rate of Income Tax Withheld at Source incident on remittances abroad made by individuals to cover expenditure on tourism trips, Business, service, training or official missions.

The new rate will be effective until 31 December 2019 and worth spending limited to R $ 20 thousand a month. The reduced rate also applies to operators and travel agencies, as the industry wanted, since spending per passenger does not exceed R $ 10 thousand a month.

The text was approved in symbolic vote, featureless, and now goes for consideration in the Senate. The vote was only possible after an agreement between the government leader, Congressman Andre Moura (PSC-SE), and deputy leader PT Givaldo Vieira (PT-ES), that ended the opposition obstruction which postponed the decision for more than six hours.

The measure also provides that the tax 25% also does not fall on the pensions paid by social securities Union, States and municipalities to persons resident abroad. In these cases, They should be worth the same rates of income tax that are paid in the country.

The MP maintains IR collection of exemption on remittances abroad intended for educational purposes, scientific or cultural, as the IRS was regulated in January, and also eliminates the payment of related tax the medical and hospital expenses in return from abroad or their dependents. The House also included the exemption to product promotion activities, Brazilian services and tourist destinations.

By the end of 2015, remittances from individuals were also free of charge, up to a monthly limit of R $ 20 one thousand. For travel agencies, the exemption was limited to R $ 10 thousand per month per passenger. With the end of the tax benefit on 31 from December, However, the tax rate rose to 25% earlier this year. since there, Tourism Area representatives defended the change.

The vote of MP 714/16, authorizing the increase of foreign capital in airlines of a limit 20% up to 49%, It was postponed to next week. The measure also allows an international company holds up the entire capital of an airline in Brazil, since Brazil has a reciprocal agreement with the country of this matrix.


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