The phrase describes a situation where an individual has not submitted the required formal notification to the Brazilian tax authorities upon permanently leaving the country. This declaration, when filed, officially terminates one’s tax residency in Brazil. Failure to submit this declaration can lead to continued tax obligations in Brazil, even after the individual has established residency elsewhere.
Omitting this process has significant implications for an individual’s tax status. Brazilian authorities may continue to consider the person a tax resident, subjecting them to taxation on worldwide income. The absence of this declaration can create complications when attempting to manage assets located in Brazil, or when re-entering the country for business or leisure. Historically, the requirement for this declaration has evolved alongside changes in international tax regulations and Brazil’s efforts to monitor and manage its tax base.
