WhatsApp

International · SPD Advocacia

Own a company or trust abroad? Law 14,754/2023 changed the taxation

Since 2024, the profits of companies abroad controlled by individuals resident in Brazil are taxed every year, even without a distribution, and trusts now have their own rules. Anyone with assets outside Brazil needs to adjust their tax return, structure and succession plan.

Brazil and abroadProfessional confidentialityReplies on WhatsApp
Tell us about my caseSend documents

Controlled entities abroad

Profits taxed on December 31

Law 14,754/2023 sets a 15% rate on the annual portion of income earned abroad (art. 2º, § 1º). The profits of controlled entities abroad are taxed on December 31 of each year, regardless of any resolution on their distribution (art. 5º).

The regime reaches a controlled entity based in a country with favored taxation or with its own active income below 60% (art. 5º, § 5º). The rules have applied since January 1, 2024 (art. 47, II).

Trust

The assets remain with the settlor

Under art. 10, the assets and rights remain owned by the settlor after the trust is created (item I). A change of ownership is treated as a gift, if it occurs during the settlor's lifetime, or as a transfer upon death (causa mortis) (§ 2º). The assets are reported by the owner at acquisition cost (art. 11).

This affects the ITCMD (the state tax on inheritance and gifts) and the division of the estate. Planning needs to consider income tax in Brazil, the rules of the country where the assets are located and the family succession.

Requirements

What is reviewed

Structure

Companies, funds and trusts abroad.

Country

Local taxation and any tax treaty.

Returns

Income tax return and foreign capital declaration.

Family

Heirs in Brazil and abroad.

Source: Lei 14.754/2023, arts. 2º, 5º, 10, 11 and 47.

What is your case?

Situations the firm handles

Offshore

Company controlled in another country

Annual taxation of profits.

Lei 14.754, art. 5º
Trust

Trust created by a resident of Brazil

Ownership by the settlor and succession.

Lei 14.754, art. 10
Succession

Heirs to assets abroad

Gift, inheritance and ITCMD.

Lei 14.754, art. 10, § 2º
Return

Brazilian moving back to Brazil

Adjusting structures to the Brazilian regime.

Case review
Holding in Brazil

Assets in Brazil and abroad

Integrated succession structure.

Planning
Tax return

Assets abroad reported incorrectly

Regularization with the accountants.

Case review
This page provides general information, does not replace an analysis of the case and there is no guarantee of results.

Step by step

How the firm works

  1. Mapping. Structures, accounts and assets abroad.
  2. Analysis. Tax in Brazil, the rules of the other country and succession.
  3. Adjustments. Reorganization, tax returns and succession documents.
  4. Follow-up. Annual review with the accountants.
+5 thousand cases handledTen years of law practicePractice before the STJ and the STFFeatured in G1, UOL, Estadão and TV Globo

Case review

Let us review your structure abroad

Answer the questions, one at a time. At the end you can attach documents, which go straight to a folder in the firm's Drive, and send the summary via WhatsApp. Everything is protected by attorney-client confidentiality.

Common questions

Frequently asked questions

Is the offshore company profit taxed even without a distribution?

For a controlled entity covered by art. 5º, yes. The profit is taxed on December 31 of each year.

Does a trust take the assets out of my name for the Brazilian tax authorities?

Under Law 14,754/2023, the assets remain owned by the settlor, and the transfer to the beneficiaries is treated as a gift or an inheritance.

Do you serve people who live outside Brazil?

Yes. Service is online, with electronic signature of the documents.

Do you serve clients outside Goiás?

Yes. Service is online for the whole country and also for Brazilians who live abroad.

How much does it cost?

After the review, the firm sends a written fee proposal, before any engagement.

Lawyer for offshore companies, trusts and assets abroad

SPD Advocacia, based in Anápolis-GO, assists Brazilians with assets outside the country, both in Brazil and abroad, together with their accountants.

Law 14,754/2023

Annual 15% taxation, with profits of controlled entities determined on December 31.

Trust and succession

The assets remain owned by the settlor, and the transfer is treated as a gift or an inheritance.

Informational content, in accordance with OAB (Brazilian Bar) Provision 205/2021. Each case depends on a review of the documents, and no result is promised.