An individual is resident when holding a permanent visa, or a temporary visa with an employment agreement, or even without an employment agreement, when staying in Brazil for more than 183 days within 12 months. According to Brazilian Law, a foreigner working in Brazil is considered resident if:

* On the date of arrival in Brazil the foreigner has a permanent visa
* On the date of arrival in Brazil the foreigner has a temporary contract of employment with a Brazilian company

Residents are subject to Income Tax like all Brazilian citizens. For more information, see our summary on Income Tax and Double Taxation treaties: http://www.execbrazil.com/incometax

In Brazil IRPF income tax is deducted at source from the following payments to non residents:
Dividend- 0%.
Interest- 15%.
Royalties- 15%.
Services -15%.

Disclaimer
Every effort has been made to offer information that is current, correct and
clearly expressed. The information in this summary is intended to be no more
than a general overview of the position and certain details have been
deliberately omitted. The contents of this page should not be taken as an
authoritative statement of Brazilian law and practice. Neither the author nor the
publisher are responsible for the results of actions taken on the basis of
information contained in this summary, nor for any errors or omissions. This
text is not intended to render legal, accounting or tax advice. Readers are
encouraged to seek professional advice concerning specific matters before making
any decision.