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Income tax in Brazil
User: Heitor
Date: 4/11/2012 1:41 pm
Views: 19060
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In the U.S., if a person is hired by the federal government, they are charged federal income tax and state income tax if their state of residence has income tax.

I am curious how it works in Brazil.

If an American citizen is hired to work as a CA in Brazil and they earn a wage paid by the U.S. federal government, is the CA's salary subject to U.S. federal income tax AND Brazilian taxes?
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Re: Income tax in Brazil
User: PostoNove
Date: 4/11/2012 2:23 pm
Views: 1000
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I know some foreigners who work on oil rigs off the coast of BR (no Chevron execs!) They told me that they can only stay in the country 180 days a year to avoid being subject to steep BR taxes in addition to their home country. They are constantly flying back forth...I am interested to learn how it works with a US Gov employee thou...
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Re: Income tax in Brazil
ejg
User: ejg
Date: 4/11/2012 2:52 pm
Views: 988
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As a federal employee you pay US federal and state taxes. As someone with diplomatic privileges and immunities you do not pay host country taxes.
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Re: Income tax in Brazil
User: Heitor
Date: 4/11/2012 4:24 pm
Views: 1005
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Thank you ejg.

A follow up question.... To which state do we pay state income taxes? To the state where our U.S. house is? Or to the District of Columbia perhaps?

And what if we sell our house and are house-free while in Brazil?

I know that's pretty specific, but if you happen to have this kind of specific info, I'd be happy to hear it.
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Re: Income tax in Brazil
User: levinejd
Date: 4/12/2012 10:19 am
Views: 993
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State income tax get complicated, but are usually paid to the state you declare as your permanent place of residence or domicile. Some states waive their tax on income earned outside of the state, some do not.

If hired, there are a number of resources that can help you resolve this issue.

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Re: Income tax in Brazil
User: Heitor
Date: 4/12/2012 1:12 pm
Views: 944
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Great answer. Thank you.
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Re: Income tax in Brazil
User: ATA_dc
Date: 4/16/2012 9:30 am
Views: 948
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Thanks for the clarification! I was also wondering about this, too.
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Re: Income tax in Brazil
User: Alfonso
Date: 4/16/2012 11:10 am
Views: 981
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Oi Heitor. Something else to keep in mind. Aside from the salary we receive there are other benefits such as I believe our housing is paid for as well as things like if you have children the tuition for private schools is paid for as well. In the military your base salary is taxable but your living allowence IS NOT. I think it is the same when you receive a housing allowance in the state dept.
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Re: Income tax in Brazil
User: Heitor
Date: 4/16/2012 12:13 pm
Views: 928
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Thank you for the added information Alfonso.

See you in Brazil perhaps. :-)
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