When you turn on Interest, you’re investing in units in an accumulating offshore fund. Accumulating meaning that any income from the underlying assets held are reinvested and reflected as an increasing NAV price. You can see more information about the funds here.
If you’re a Brazilian tax resident, you're required to pay taxes on your earnings worldwide and report all your global assets, income, debts, earnings, and taxes, as applicable, annually to the Brazilian tax authorities.
Income tax
You may be liable to pay tax if you move money out of the currency you hold in Interest — through spending, sending, converting or simply moving money within Wise or to an external account. This will trigger Wise to sell units in the fund, known as disposing. In other words, profit from the sale of investment funds abroad may be taxable on the difference of units sale amount and acquisition cost, also called ‘capital gain’.
Brazil has specific legislation for assets and income from financial investments and controlled entities abroad. You may need to report these foreign assets and pay income tax (15% rate) on the related income annually.
Downloading your tax statement
You can download your tax statement by logging in to your Wise account:
Click on your profile name in the top-right (on desktop) or the top-left corner (on the app)
Select Statements and reports
Choose Tax statements
Understanding your tax statement
On the tax statement you're able to find:
a summary of the capital gains and summary of capital losses
your transaction history
value of your assets on calendar year end
Wise fees charged from you
Filing a tax return
Taxpayers may report such income annually to the Brazilian tax authorities when submitting their tax return and pay the respective tax via voucher at a flat 15% rate. This is done by submitting a tax return between March and April of the year following the assessed year (unless extension provided).
Note that taxes in Brazil on foreign income are not withheld, so you are personally responsible for calculating and paying the tax.
Generally, offshore investments are reported individually in the income tax return, based on December 31 of the tax year:
Country — you're able to find the country where the fund is domiciled on your tax statement
Acquisition cost (for funds, stocks) or balance (for bank accounts)
Gains, interests or dividends received throughout the year, and taxes paid — Wise Interest is an investment in accumulating offshore fund therefore you've received capital gains/losses when you sell the units
Bank and asset details — you're able to find the ISINs of the funds on your tax statement
Read more about how to submit your tax return to the Brazilian Tax Office on the website here.
If you have any questions about your taxes or filing a return, please speak to a qualified professional.