Tax Planning
At Ipanema Wealth, we are proactive in ensuring that our clients are compliant with their tax reporting obligations. Many of our clients have reporting requirements in more than one country depending on where they receive income and own assets hence, we must understand the tax rules of two countries and how they interact.
In most cases, it is expensive for the ‘middle-market’ executive or expatriate to access accurate and reasonably priced tax advice from a large international firm. We provide cost-effective tax advice and will refer certified professionals from our international network when required.
- Do you have tax filing obligations in more than one country?
- Are you compliant with the Common Reporting Standard (CRS)?
- Are you a US person and if so, are you FATCA compliant?
- Are you investing in Brazil and have you taken advice on personal and corporate taxation?
Wealth structuring
Some investment vehicles and their underlying assets are treated differently by certain tax authorities, therefore you may be more exposed to a higher income tax and/or capital gains tax charge than expected.
We advise our clients on how to take advantage of tax-efficient schemes such pensions, offshore portfolio bonds, trusts and tax-free savings accounts.
Inheritance Tax and Estate Planning
Many expatriates may remain liable to certain taxes in their country of domicile even if they have been living overseas for many years. We advise our clients on how to reduce their potential inheritance tax liability.
If you are already living overseas or planning to move abroad, it is important to speak to a tax advisor to avoid a potential tax liability increasing in the future.
Common Reporting Standard (CRS)
The CRS is an OECD initiative to combat tax evasion, employing the automatic exchange of information between global tax authorities. Over 100 countries have joined the CRS since 2016 and many have started to exchange bank account information of their citizens with the tax authorities of the countries in which they are resident.
The tax authorities are be able to cross-reference this data with domestic tax records and identify undeclared overseas accounts. We advise individuals to ensure that they are up to date with their filings or to participate in tax amnesties to avoid penalties or prosecution.
Watch our video on the CRS here.
Latin American tax amnesties
The Brazilian government extended its amnesty (RERCT) until July 2017 which applied to individuals who were resident in Brazil in June 2016. Brazil joined the Common Reporting Standard in 2018. Colombia, Mexico and Peru also offered amnesties on undeclared overseas assets and have entered the global information-sharing agreement.
Foreign Account Tax Compliance Act (FATCA)
Information sharing is already taking place via bilateral agreements between the US and certain Latin American countries. This will have an impact on US citizens e.g. in Brazil, including Brazilian holders of Green Cards and those “accidental Americans” who may be considered US citizens on the basis of their parents’ ties to the US rather than on their own choices.
Useful Links
