Brazil and the United States have already reached an agreement on the exchange of tax information, the Tax Information Exchange Agreement – TIEA, signed in March 2007 and promulgated by presidential decree in 2013. The new agreement was necessary to meet the requirements of the Foreign Account Tax Compliance Act – FATCA, which aims to identify the financial activities of U.S. taxpayers abroad. Among the information that must be provided by the persons mentioned above is the following information (the full list is available in Article 5 of the RFB 1.571/2015 Normative Guide): Article 2 – The information to be received and exchanged are: The United States essentially provides superficial information about the assets to be declared and their holders, although they receive information received as part of due diligence. Therefore, the obligation to exchange information is not “reciprocal.” e-Financeira is a system whereby several financial institutions must exchange information such as the value of an account to any account, the value of a possible financial application and gross income, the purchase of foreign currency and details of cross-border transactions. E-financeira must be provided by legal entities authorized to structure and sell supplementary pension schemes; legal entities empowered to create and manage programmed individual pension funds (“FAPI”); any corporation that, as a principal or incidental, receives, transmits or invests funds from their own parties or third parties, including consortium transactions, in national or foreign currency or the retention of sums held by third parties; and insurance companies that have the right to structure and sell individual insurance plans. The e-financeira must also be made available to the RFB by companies overseen by the Central Bank of Brazil (“BACEN”), the Securities and Exchange Commission (“CVM”), the Superintendence of Private Insurance (“SUSEP”) and the National Complementary Welfare Superintendence (“PREVIC”). Article 1 – For the purposes of this agreement and all its annexes (“agreement”), the following terms have the following meaning: in the previous section of this article, there have been situations in which the United States does not provide at all information on assets received in the United States or provide information only at a superficial level when revenues from the U.S. source are available. Decree 8.003, issued on 16 May 2013, contains the text of the Agreement on the Exchange of Tax Information (“TIEA”) between the Government of the United States of America and the Brazilian Government.
TIEA facilitates the exchange of information that may be useful to tax authorities in both countries for the purposes (i) of the determination, taxation, enforcement or collection of taxes on persons subject to TIEA Section 3 taxes, and (ii) the identification or continuation of tax cases.