Expert: Ken Rapoza Cruz - 6/8/2010

Question
Hi,

Do you know of any Accounting firms in Brazil or Canada who deal with personal taxes from both countries.

My husband may be transferred to Brazil for a few years and we are trying to find out what the financial implications will be.  We want to come out ahead not behind once we return home.
Thanks

Answer
You will need to be making big money for this, and then you can hire someone like Ernst & Young or Deloitte. However, it is just as easy to file your Brazil and Canadian taxes seperately. That is how I awlways did them and it was not any harder or more time consuming.

USUALLY, the Canadian firm will send you to Brazil and YOU will be responsible for filing taxes in Brazil. As an expat, you most likely do not have to pay Canadian federal income taxes. Depending on some states ,you MIGHT have to pay state in come taxes. I pay Massachusetts income taxes, for instance, but not US fed taxes (I do pay soc sec and medicare, however).

If your company is a multinational and will pay you in the local currency, reals, then your taxes will be taken out of your paycheck like they are in Canada. When you file your taxes, you can go to any accountant, or maybe someone in HR at your company can recommend someone for you.

I have learned that in life there is no real way of coming out ahead. Except this one: Keep your overhead low. Save more, spend lesss.

Good luck.