Taxes

01

IOF

02

How does the payment of dividends work?

03

Where can I find information for income tax returns?

04

How do I declare my tax on profits and capital gains?

01

IOF

The IOF (Brazilian Tax on Financial Operations) will vary depending on the on the purpose of the conversion.
Exchange from real to dollar, If directed to the investments account is 0,38%, and if transferred to the Banking account is 1,1%.
Exchanges from dollar to real, either originating from the investments or Banking account are 0,38%. The tax will always be paid when carrying out exchange transactions, whether from reais to dollars or from dollars to reais.
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02

How does the payment of dividends work?

Dividends are paid directly to your brokerage account approximately 2 to 3 business days after the payment date. You will be entitled to a dividend if you hold a share up to the ex-dividend date.

The dividend amount is generally proportional to your participation. This includes fractional shares. For example, if a company pays a dividend of US$ 10 and you hold 0.5 shares, your dividend will be US$ 5 (less any applicable withholding).

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03

Where can I find information for income tax returns?

We provide Avenue customers that are Brazilian residents with some auxiliary reports on the Tax Report statement. These reports are not a substitute for eventual tax advice. We concentrate in a simple way, on a monthly basis, the information necessary for filing and collecting taxes.*
You can find the information for income tax declaration on Avenue’s platform, under Reports.
We provide an annual report, an income report, a capital gains report and DARF creation directly from the platform.
Income report: An auxiliary report for a simple conference to declare earnings received. In it, you can easily find all the dividends received in the month.
Capital gains: Auxiliary report for a simple conference to calculate Capital Gains. Whenever assets are sold, the report will be generated for your conference. The calculation must be done using GCap.**
From the Capital Gain report, it’s possible to create the DARF directly on the platform.
You also have access to the Income Tax Manual, for help with declarations.
* Only available to customers with Brazilian tax residency.
** Available only to customers who use the partner bank for the exchange. Deposits made directly in dollars, or by other banks will not have the necessary information for the disclosure of the report.
IMPORTANT: We recommend the detailed reading of all notes and complementary information provided in the reports.
Watch above our video tutorial on how to declare Capital Gain:
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04

How do I declare my tax on profits and capital gains?

At Avenue, you are investing in the American Market as a foreign investor (hence the need to complete the W-8 form in your registration). In the U.S you can invest in the market as a tax resident of a foreign country, but be aware that part of the income (dividends) on your investments will generally be taxed directly by the IRS.
It is important to stress that the information and declaration of income and capital gains obtained by the investor in his country of tax residence is his sole responsibility.
Avenue provides general information and reports to assist with tax returns on investments made by clients. Download now our complete tax return manual here exclusively for tax residents in Brazil.
Our main objective is to provide investors with practical and objective information on how to fulfill the obligations related to investments made in the USA. However, we always recommend that the investor seek the guidance of specialized and reliable professionals to follow the procedures required by the tax regulations of his country.
Avenue Securities will not be responsible for any losses arising from errors, inconsistencies, omissions or any other matter involving the calculation, collection and reporting of investments, income and capital gains earned abroad by the investor.
The information provided through support reports is of a general nature and cannot be used as a substitute for specific tax, legal or investment planning advice. Investors should seek information and, when they see appropriate, seek professional advice on potential tax consequences associated with buying, selling, holding or disposing of securities under the laws of their country of citizenship, residence, domicile or incorporation, as well as to assist with legislative, administrative or judicial changes can modify the tax consequences. There is no guarantee that the tax rules in force at the time an investment is made will remain in effect for the period in which the investment is made.
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