Clipping of news on Brazilian Culture, Law and Citizenship
01.29.2016
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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Rate of 25% on sending money abroad will be charged to travel agents, but cost can be passed on to consumers
SAMANTHA LIMA
The new taxation of income tax at source on foreign travel was expected by the tourism sector since last year. The publication of the rule that deals with it by revenue, last-Tuesday, however, frightened consumers who plan to travel abroad, for pleasure or business, and already face in the travel budget, the surge of the dollar. TIME spoke with industry representatives and experts to dispel doubts that still persist.
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1) What is the "new tax" on income tax on foreign travel and how it affects consumers?
Taxation of Income Tax Withheld at source on "income paid, credited, employees, delivered or remitted abroad" came into being in 2010. But at the time, at the request of the representatives of tourism companies, the exemption was approved in selling packages and services, valid until December 2015. So the collection began to be made now. The tax is paid by the service providers tour companies of Brazilian service, the remittances made to pay for them, from January 1 this year. The Instruction on the collection was published by the IRS on January 26 and has retroactive effect.
2) what services the IRS will levy the withholding tax on remittances abroad?
The sale of tour packages (focusing on the landward side and not on the air), hotel reservations, car rental, buying tickets for shows and parks, for example. Reservations made directly by the customer through the Internet, without the use of travel agencies in foreign sites, and paid with card, do not suffer taxation of 25%, but remain subject to IOFde 6.38%.
3) Who pays the taxes?
Tour companies installed in Brazil that meet consumers at the time they send money to suppliers abroad to pay for services. But this cost may be passed on to consumers, which means that the packages will get more expensive, not only because of the rise of the dollar.
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4) Who travels abroad will have to declare the trip or making any adjustments in the annual income about it?
No
5) What is the rate?
The law provides 25% of the value of sales. If a company fully pass on the payment in the January sales, apply an increase of 33% on the price in December. The Ministry of Tourism announced after meeting with representatives of agencies and tour operators, who will seek approval by the end of January, the 6% rate, as had been agreed with the former finance minister, Joaquim Levy, who left office in December. "From what we heard at the meeting, the trend is that the rate has retroactive validity," said Edmar Bull, president of the Brazilian Association of Travel Agents (Abav) national. Wanted, the Ministry of Finance and the IRS did not return to the entry.
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6) All packages and daily hotel will increase? While?
The increase decision is business strategy of each service provider. Magda Nassar, president of the Association of Tour Operators (Braztoa) said the increases are not occurring. "As we knew that this should occur, we alert operators to make remittances of services contracted in 2015 fully in December, even consumers who have to pay in installments." Research by TIME on the night of Tuesday, the 26th, the site of Decolar.com travel reservations already charged more in some products, such as tickets to Disney parks, as an "income tax on remittances" . It was found also levy on hotel reservations, but this is no longer done on Wednesday. The Hoteis.com and Expedia have not changed values until Wednesday, the 27th Wanted by the respective press offices, Hoteis.com Take off and did not return.
7) Who buys dollar paid tribute to travel?
Do not.
8) Anyone booking hotels online, from Brazil, paid tribute?
Reservations made directly by the customer on the internet in foreign sites, without the use of travel agencies and paid by card, do not suffer taxation of 25%, but remain subject to IOF at 6.38%.
9) There will be collection of IR on airline tickets abroad?
In theory, the standard recipe should be no recovery of 15% on ticket sales by foreign airlines. In practice, however, due to agreements made in the 40s, between Brazil and most of the main destinations abroad (countries in the Americas and Europe, for example), to avoid double taxation, the new collection has just not worth. "There may be one or another country outside the agreement, but these top destinations are certainly covered," says Carlos Ebner, president of the International Air Transport Association (Iata). The same goes for shipping companies abroad. For this reason, says the president of Abav, the incidence of the tax, is 25%, it stands now, or 6%, as is expected to be approved, there will be valid for the whole package, just for the hotel. Tickets issued by Brazilian airlines are also out.
10) If the government does not lower the rate, and the agency or operator has not passed the 25% in services sold in January, they can make further charges for the consumer?
Will depend on the contract the customer has signed with the operator. "If ocontrato foresaw such a possibility, the consumer will be expected to pay later. However, the company must have made this very clear possibility at the time of sale, "says Leonardo Ribeiro Person, Business Law Professor and Tax Ibmec / RJ. "To avoid losing customers, many companies end up absorbing the cost."
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11) exchange is taxed?
No. Revenue's decision exempts "consignments destined abroad for educational, scientific or cultural purposes, as well as those to tuition payments, enrollment in congresses, conclaves and seminars." Proficiency exams in languages and remittances by individuals for medical and hospital coverage for yourself or dependent also left out.
Travel planning (Photo: thinkstockphotos) P
Source: Journal Times
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This article was translated by an automatic translation system, and was therefore not reviewed by people.