The Brazilian Federal Revenue's new program for the regularization and updating of movable and immovable assets is set to close its enrollment on Thursday, the 19th. However, participation has been disappointingly low, particularly concerning the regularization of assets or rights that were either undeclared or incorrectly reported to tax authorities. Taxpayers are required to pay 15% tax and an additional 15% fine on the total value of undisclosed resources, assets, or rights, with payments due by February 27. Furthermore, individuals must demonstrate that the funds used to acquire these assets originated from legitimate sources.

Tax expert Raul Iberê Malagó, a partner at M&A Law, emphasizes the importance of this regularization process. He notes that coming forward to declare assets can significantly reduce the penalties, which could otherwise reach up to 100%, thus preventing potential accusations of tax evasion. This program is particularly relevant for those looking to regularize cryptocurrency holdings, as the Brazilian government is now equipped with the necessary tools to track such assets through financial information exchanges.

While the program presents an opportunity for taxpayers to align their finances with tax regulations and avoid hefty fines, the low level of interest might suggest a need for increased awareness and education regarding the benefits and processes of asset regularization. As the deadline looms, both the tax authorities and financial experts are advocating for taxpayers to take this chance seriously to mitigate future legal issues and penalties related to tax obligations.