The Federal Brazilian Tax Authorities (RFB) published Solução de Consulta – Cosit 166/2018 on September 28, 2018 regarding the application of the reduced rate of 0% income withholding tax for international charter leasing payments. It states that this rate may apply on amounts as consideration for international charter leasing of boats/vessels, but the beneficiary must not be located in a jurisdiction considered a tax haven. In addition, the reduced rate of 0% may still apply where the international remittance is made by a third party located in Brazil directly, rather than the entity that is performing the leasing.
Related Posts
Brazil, Slovak Republic sign amending protocol to tax treaty
December 13, 2024
Representatives from Brazil and the Slovak Republic signed a protocol amending their 1986 income tax treaty on 10 December 2024. The treaty aims to avoid double taxation and prevent fiscal evasion over taxes and income between the two
Read More Brazil further updates electronic invoicing amid tax reforms
December 11, 2024
Brazil’s government has released an updated version of Technical Note NT 2024.002 on 6 December 2024. This updated version introduces new validation rules to calculate the monthly amounts due for the recently implemented indirect taxes - CBS
Read More
Brazil: Chamber of Deputies approve tax treaty with Norway, amending protocol with Sweden
December 04, 2024
The Brazilian Chamber of Deputies approved an amending protocol with Sweden on 26 November and a tax treaty with Norway on 27 November. Signed on 4 November 2022, the agreement with Norway aims at avoiding double taxation of income and
Read More Brazil proposes income tax reform, plans spending cuts
November 28, 2024
Brazil’s Finance Minister Fernando Haddad has proposed expanding income tax exemptions for lower-income citizens while increasing taxes on higher earners on 27 November 2024. Alongside these measures, the Finance Minister also outlined plans to
Read More Brazil consults commodity transfer pricing
November 28, 2024
Brazil's revenue authority has launched a public consultation on a proposed amendment to its transfer pricing rules on 27 November 2024. The proposed amendment concerns Normative Instruction RFB No. 2,161 of September 28, 2023, addressing
Read More Brazil ratifies pending tax treaty protocol with China
November 25, 2024
Brazil's Chamber of Deputies (lower house of the National Congress) has ratified the pending protocol to the 1991 income tax treaty with China on 19 November 2024. The protocol has been submitted to the Senate for approval. Signed on 23 May
Read More