Brazil: The financial transactions tax on cross-border loans
The governments released a Decree no. 8,26314 on June 2014, for the purpose to assigns new maturity term for cross-border transaction. Financial transactions tax on cross-border loans to be allocated at 0% rate which was previously 6% IOF rate.
See MoreBrazil: Modify the tax amnesty programs
Brazil recently published MP 638/14 provisional measure in order to expand the availability of the tax amnesty program under REFIS also referred as special tax recovery program, legislated by Law 11,941/09 and Law 12,249/10.The federal tax amnesty
See MoreBrazil: Normative Instruction no. 1,037/2010 established the list of low-tax jurisdictions and privileged tax regimes
The Federal Revenue Authorities released Interpretative Normative Instruction (no. 1,474/2014) on 20 June 2014. Certain Swiss tax regimes will be considered ‘privileged tax regimes’ for Brazilian tax purposes. According to the new rule, regimes
See MoreBrazil: Tax Break for Automobile and Furniture Industries
On June 30, 2014 the Finance Minister has announced to extend a tax break for the car and furniture industries until the 31 December 2014, in order to help boost sales depressed by a slowing economy. The taxes for new cars are in between 3% to 10%
See MoreBrazil: Reduces Different Import Tax Rates
The Foreign Trade Chamber (CAMEX) of Brazil has declared that the 10% import duty will be cut from wheat, capital and electronic goods till 15 August 2014, and this decision came into effect from 24 June 2014. CAMEX also introduced, 2 Resolutions-
See MoreBrazil: Tax Credits Program for Exporters
Brazil government will renew a tax credit program for manufactured goods exporters from June 18, 2014. This program will fix the tax credit rate of 0.3% for this year which was varying from 0.1% to 3% on foreign sales. It is also announced that IPO
See MoreBrazil: Tax exemption to encourage Initial Public Offerings
On June 16 of 2014 the Ministry of Finance confirmed that the initial public offerings (IPOs) of smaller company’s investment will be cut from the capital gain tax by 15% and the capital gains tax will not have an effect on infrastructure
See MoreBrazil: Tax exemption from Foreign Loans
The Finance Minister of Brazil declared that the government has announced to cut some tax on foreign loans and from the Tax on Financial Transactions (IOF) on 4 June of 2014 and introduced a new Decree No. 8263The 6% IOF will no longer applicable
See MoreBrazil: Superior Court Rules in Vale CFC Appeal
The Superior Court of Justice in Brazil has arrived at a decision in relation to the mining company Vale. The Court has ruled that profits of Controlled Foreign Companies (CFCs) of Vale in Belgium, Luxembourg, and Denmark would not give rise to a
See MoreBrazil – Tax Hike on Drinks Postponed
Brazil is delaying until September 2014 a proposed rise in indirect tax on certain types of drink. The original proposal was that the tax on energy drinks, beer and some fruit juice would increase by around 1.5 percent on average from 1 June 2014.
See MoreBrazil- Taxes on Drinks Ahead Of World Cup Increases
To take full benefit from the large number of visitors to the country this year, Brazil is to increase taxes on certain categories of drink such as beer, energy drinks and some fruit juice before the beginning of the soccer World Cup which is to be
See MoreBrazil and Norway Sign Protocol to DTA
Brazil and Norway signed a Protocol to their double tax agreement on February 20, 2014. No further details are currently
See MoreBrazil – Tax authority revises position on cross-border reimbursement arrangements
Brazil’s tax authority has issued a ruling to a taxpayer reflecting a change of position concerning cross-border cost reimbursement arrangements. Traditionally, the tax authority (Receita Federal do Brazil—RFB) has imposed a high tax burden of
See MoreBrazil – Ruling permits taxpayers to align their transfer pricing policies
According to a recent ruling by the Brazilian tax authority taxpayers should be able to better align their transfer pricing policies to eliminate potential contingent liabilities, reduce taxable adjustments, and/or eliminate the double taxation
See MoreBrazil – Social Security Tax on Exports to Trading Companies
The tax department has issued guidance clarifying that revenues from the sale of products to trading companies for the purpose of export are subject to social security taxation. Normative Instruction 1436 (IN 1436) released on 9 January 2014 was
See MoreBrazil: Withholding tax thresholds for Employee Profit-Sharing Plans Increased
The employee profit-sharing plan (participação nos lucros ou resultados, PLR) related tax withholding thresholds in Brazil have recently been modified. This will be applicable from 1 January 2014. For the taxable year 2014, the tax withholding
See MoreBrazil Repeals Transitional Tax Regime and established important changes to tax system
Brazil’s Federal Government has published Provisional Measure No. 627 (PM 627) on 12 November 2013, containing a long expected set of rules that not only repeal the Transitional Tax Regime(TTR) but also added new rules aimed at permanently
See MoreTrilateral Cooperation on Fiscal Transparency among United States, Brazil and El Salvador
Focusing on improve tax collection, effective and efficiency of fiscal transparency, an International Initiative for Trilateral Cooperation has been announced by the Governments of El Salvador, Brazil and the United States on December 2, 2013. These
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