By Francisco Lisboa Moreira, Bichara Advogados, São Paulo
Brazil on Monday signed a new double tax treaty with the United Arab Emirates. The text has not yet been released.
This represents a further advancement of Brazil’s international tax policy under President Michel Temer, following a new treaty with Argentina, signed in 2017, and treaties with Switzerland and Singapore, signed earlier this year.
The UAE is currently blacklisted in Brazil as a low-tax jurisdiction under Normative Instruction 1.037/2010.
Therefore, we expect a change in the UAE’s status soon. Most likely, Brazil will instead identify UAE regimes that will be treated as a privileged tax regime.
Brazil also published yesterday a decree accepting a protocol to the double tax treaty between Brazil and South Africa, which was signed in 2015.
The protocol amends article 26 of the treaty, which deals with information exchange procedures between both countries.
Information to be exchanged will be used for federal tax purposes, in the case of Brazil, and national taxes, in the case of South Africa. This represents an increase in the scope of the treaty, as other federal taxes may be charged from information obtained, such as PIS and COFINS, or even social security taxes.
The information received pursuant to the treaty must be treated as fully confidential and be used for the sole purpose of tax assessment procedures, following general procedures established by the OECD and United Nations model conventions.
Francisco Lisboa Moreira
Francisco Lisboa Moreira is a tax lawyer with 17 years of experience with Brazilian taxation, having participated in various projects involving a broad range of tax questions, including international tax planning, transfer pricing, general tax consulting, due diligence projects and cross-border transactions.
His credentials include an LLM International Taxation at NYU and a Master´s Degree (ongoing) at the University of São Paulo.
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Avenida Presidente Juscelino Kubitschek, 1909 - Torre Norte, 23° andar, Vila Nova Conceição
São Paulo - SP
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Avenida Presidente Juscelino Kubitschek, 1909 - Torre Norte, 23° andar, Vila Nova Conceição
São Paulo - SP
CEP: 04.543-907
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Dear Francisco,
I’m a tax manager at the large Russian investment company. We are contemplating some business in Brazil and would like to review double tax treaties between Brazil and certain jurisdictions of our Subsidiaries (Mexico and UAE). Could you please kindly share the text of the respective DTT with us.
Kind regards,
Anna
Hi Anna! I’m sorry I could not see your message back then. The dual language text can be found here: https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/legislacao/acordos-internacionais/acordos-para-evitar-a-dupla-tributacao/EAU/eau-dupla-tributacao.pdf