Brazil Expat Forum

Taxes on company pensions from the UK

5/1/2022 19:37 EST

I have a monthly company pension from the Uk as I am retired no other source of income any information about taxes I have to pay would be grateful .

VovoBillinBrazil

6/20/2022 15:33 EST

As far as I can find. You will be taxed up to 27%, depending upon your pension amount. I have Googled this in every way seemingly possible and it's all the same information reworded depending on the site you visit.

If the UK has an agreement like the USA with Brazil. You will be able to credit your Brazil taxes against your UK tax burden or vice versa. For instance if your taxes on your Brazil (Worldwide) Tax Filing, in your case a pension example of 20%. You would be credited that 20% on your UK taxes. I am not certain if there is a deduction in Brazil if you are 60 or older. If health care costs are deducted. They definitely don't have as many loopholes etc. as say here in the USA. I can pare my taxes down to near zero with a simple Business (Corp or LLC).

In the case of the United States, United Kingdom, and Germany, the Brazilian authorities have officially recognised the reciprocity of tax treatment, which permits the offsetting of the tax paid in those countries against the tax due in Brazil, on the same earnings.

Here's a site giving a basic overview of Tax Rates.

https://taxsummaries.pwc.com/brazil/individual/taxes-on-personal-income

I will contact a tax person down there to see where we are at.

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VovoBillinBrazil

6/20/2022 15:04 EST

VovoBillinBrazil

6/20/2022 14:55 EST

True. I have the WISE card. We have transferred $ down thru their exchange and have found it to be (currently) the most cost effective. Even better than the "Gray" Market money changers if we had brought cash down.

Keep in mind. If you have a bank account in Brazil as a US Citizen or Green Card Holder and at any time a cumulative amount of $10,000 USD has ever been in that account, over the course of a one year period, that must be reported under FATCA act on your US Federal Return. So under that and you are likely OK. Ask a tax person. Brazil and the USA share data on Foreign accounts with one-another. How accurate the sharing is? Unknown to me, But considering an IRS Letter never received (bcuz you live overseas) about failing to report while in another country could cost a lot of $$.

As far as taxes. I understand the FEI IRS Form 2555 (If you earn income from a business or working for a company). As of 2019 you are exempt $108,000 USD. I know a person who files separate from his wife and both claim this for their business down south. No problems in 12 years.

My question is coming down on a Pension and SS. Taxes suck!!! All I have to say about that and the giant waste of space called the IRS.

Do I file with Brazil first or USA? Questions questions.

BrazD

5/26/2022 15:35 EST

Lots of folks are finding the card from wise.com useful in Brazil. Better rates on purchases than banks.

TounieBrasil

5/24/2022 09:34 EST

Expatriates who are Brasilian tax residents, are taxed on their worldwide income and gains (rent, interest, dividends). Income from abroad is subject to taxation in Brasil.

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VovoBillinBrazil

5/23/2022 11:14 EST

I haven't experienced it yet, not until Jan 2024 after our complete move down. But, my understanding is you are only taxed on the money you "Import" via, bank transfer. We have been advised to use our Credit Card (Generally the most favorable Exchange Rate too) for most day to day living and "Import" enough to cover expenses (Cell phone, electricity, water etc.)

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