Brasília – Brazil saw a net inflow of USD 2.531 billion month-to-date through last Friday (21), the Brazilian Central Bank reported this Tuesday (25). The result comes after five straight months of net outflows. In September, the net outflow was USD 5.539 billion.
The head of the Central Bank’s Economic Department, Tulio Maciel, said that repatriation of funds was certainly one of the causes for the result. He stressed that USD 1.6 billion entered the country from October 19 to 21 as a result of financial operations. “This might be a reflection of a stronger influx of this kind,” he said.
Through the Law on Repatriation of Funds, the government hopes to enhance Treasury reserves. Natural persons and legal entities have since April to comply with the Special Regime for Foreign Currency and Tax Regularization; the deadline is October 31.
The law allows regularization of non-stated or misstated funds, assets or rights remitted or kept in other countries or repatriated by residents in Brazil. Upon regularization, taxpayers must pay 15% in income tax and a 15% fine, adding up to 30% of the amount being repatriated.
*Translated by Gabriel Pomerancblum
