In November 2013, provisional measure was published n. 627, which, among other provisions, has modified the form of taxation of the equity, physical and legal persons, from the distribution of profits from related and / or subsidiaries abroad.

Before the advent of alludida provisional measure, there was no obligation to pay income tax as long as it did not overcome the distribution of profits, and the collection can be postponed until the time in which the resources actually passed from the equity sphere of the legal entity Investor.

From 2015, if converted to MP. 627, the same investors will have to generate their balance sheets and inform the Treasury if there was a profit. In this case, the payment of income tax should happen immediately, regardless of your transfer (with doubts whether the application will be retroactive or not). It ends, thus, tax advantage of high relevance in terms of strategy for investments abroad, causing alternatives to be re-evaluated.

Experts converge in the orientation that the timing is not ideal for decision-making, either as to the undoing structures already implemented, or the opening of new vehicles to apply outside Brazil. The recommendation is that investors await consolidation of the legislative situation, but by caution, begin to gather documents and provide offshore .

The term for the conversion of MP n. 627 in law is 60 days, extendable for equal period, so that the definitive regulation is awaited for the end of March 2014.

Source: News reproduction published by economic value - Finance - 14.1.14 - on site of Association of Lawyers of São Paulo .