Many people are unsure whether or not to declare money they have received from abroad. Roughly speaking, the answer is yes, but there are some details that must be analyzed. We have prepared this post to answer your questions about the incidence of Income Tax 2020 and other taxes when receiving money from abroad.

Income Tax 2020: Money received from abroad must be declared

Many people are unsure whether or not to declare money they have received from abroad. Roughly speaking, the answer is yes, but there are some details that must be analyzed. We have prepared this post to answer your questions about the incidence of Income Tax 2020 and other taxes when receiving money from abroad. Know more about it now in www.taxfyle.com/blog/independent-contractor-taxes.

• The tax system is one of the most complexes in the world, so many people are in doubt about what taxes they should pay, especially when it comes to money coming from abroad.
• The international transactions are subject to taxation in the country of origin or in the country where the person resides and it requires a lot of attention in this process to ensure that there is no irregularity.
• After all, does receiving money from abroad pay tax? Check out in this post everything you need to know about the subject, what income tax is, its purpose and whether it is necessary to declare amounts from other countries.

To receive money from abroad you will pay the IOF tax and will have to declare the remittance in the Income Tax.

Does receiving money from abroad pay tax? 

Yes, receiving values ​​from abroad implies the payment of taxes and fees. Although the financial market presents several forms for international transfers of sending and receiving money, all of them are subject to tariffs and taxes. The point here is to choose the service of receiving money from abroad that covers the cheapest rates.

When receiving money from abroad, the transaction may incur an IOF tax. In addition to being concerned with taxation related to the transaction, it is relevant to know what income tax is and if it is applicable to your situation. Keeping up with the law is to avoid headaches and disorders.

What is Income Tax?

The Income Tax is a federal tax applied to the individual’s income and also to his or her patrimonial evolution. Control by the government is systematic and annually people and enterprises must inform the Federal Revenue the financial flow during the year.

The process for individuals is carried out through the Income Tax Declaration, with the realization period between March and April. The following situations fall under this procedure:

• annual salary above R $ 28,559.70
• annual investment income above R $ 40,000.00
• rural activity with gross income above R $ 142,798.50
• gain on the stock exchange
• assets and rights
• resident status.