I am considering couple funds into the agriculture sector like Pela Terra II - while I understand there is no tax liability on income for non-residents, however given I still have to pay taxes where I am resident of - does anyone know an income distributed to investors as rendimentos de capitais - what is this similar to in US parlance - like is this capital gain type of income or would this be Dividend type of income - given it’s a distribution of ‘rent’ & ‘yield’ from the various farmland assets on a yearly basis.
For what it is worth, if you are a US investor, what they call it is irrelevant. The onus is on you as the taxpayer to look at their books, determine what the income is, and choose the correct classification. You may choose to listen to their accountants and lawyers, and most of us do of course, but they aren’t held legally responsible for that being right, you are. Yes, that’s what the underlying law says. So you should ask them very specifically as part of your due diligence.
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@jb4422 Thanks - but this is a highly obvious & generic answer & I get that- given few on the forum have already invested in the first fund, my point was to understand what is the ‘type’ of income that the yearly distributions come under - as dividend (taxed higher) or as long term capital gain distribution (taxed lower) or something else? The idea of my question was really to get a specific answer from someone already invested in the fund or who’ve done a study of the proceeds/income