Global Daily Tax News, Brazil Extends ReVar Pilot, (Sep 19, 2024)

Brazil has extended the pilot phase of the ReVar program, which is intended to support the automatic assessment of investors' tax liability.

The ReVar initiative requires the reporting of income paid in relation to variable income investments. The program currently covers a select group of taxpayers, to support the development of the necessary infrastructure, with the requirements expected to cover other investors from early 2025.

The Brazilian Federal Revenue has recently published Normative Instruction RFB No. 2,213, which extends the deadline for the reporting of data for transactions carried out from May 1, 2024, and assets in custody from April 30, 2024. This information may now be provided in the period to December 2024.

The Federal Revenue said: "By extending the testing deadlines, the Federal Revenue Service seeks to provide a more effective adaptation to the new tax assessment system, benefiting thousands of investors in the variable income market."

"ReVar will be the official calculator of the Federal Revenue Service to calculate the tax levied on the variable income of individuals. The program is in the testing phase, led by the RFB in collaboration with the Stock Exchange (B3). This tool will enable the automation of calculations on gains from variable income instruments, and, consequently, the calculation of the income tax due on these transactions."