Withdrawal of FGTS by foreigners

Companies often view their expatriation processes as internal service provided to the business areas of multinationals.

This view means that many HR Departments take care of the expatriate’s experience in a remarkably close and attentive way.

It happens that, many times, with the end of expatriation, HRs forget that there are still some activities to be carried out and that they can still take years, and if they are not conducted in a proactive way, they can impact the evaluation of the so-called ‘expatriate experience’.

One of these activities is the withdrawal of FGTS from those expatriates who had paid activity in Brazil under the CLT regime, which has two main difficulties:

  1. Foreigners often forget to raise these values; and
  2. Often there are no longer any current bank accounts in Brazil – which are necessary for the withdrawal to be authorized.

Caixa Economica Federal (Brazil state bank in charge of the FGTS) facilitates the release of the credit balance of FGTS accounts for people who are abroad, allowing withdrawals without the need for expatriates to return to the country.

This information would be excellent if not for the fact that, in most cases, expatriates have already submitted the Income Statement informing their Definitive Departure from Brazil and closing their current accounts in the national territory. And why is this a point of attention?

Because the amounts will be credited to a bank account at Caixa or another bank in Brazil, owned by the expatriate.

In view of this obstacle, Filippini Global Talent comes to offer its advisory services to expatriates by accompanying and advising during the entire process and ff they do not have a bank account in Brazil, third party permission can be obtained by means of a legal power of attorney, to receive the amounts, freeing HR from these activities and generating more positive evaluations of the expatriation period.

If you and/ or your company believe we could do a partnership in such matter, please contact us!

Fuente: Filippini Global Talent