Brazilian international tax policy – what to expect in 2018?

Autor: Francisco Lisboa Moreira
23/01/2018 Imprimir Enviar E-mail

Thoughts on Brazilian tax policy for this year. Stepping forward OECD.

Brazil has always been a country that has implemented measures to protect its tax revenues, such as the limitation on remittances abroad and deductibility on royalty payments, the fixed margin transfer pricing methods and the worldwide income regime – which goes far beyond the concept of CFC legislation.

In this context, we must not forget all the international tax scenario, especially the one created after the implementation of the Base Erosion and Profit Shifting (“BEPS”) Project by the OECD, which main purpose is to contain the aggressive tax planning schemes conducted by multinational enterprises. Although not a member, Brazil participated actively of the working groups and has always manifested its positions in the drafts of the action plans.

In 2016 and 2017, the first two years after the final BEPS reports were issued, the Brazilian tax authorities have sent some signals towards a small change in the international tax policy. From changes in the list of tax havens (last December Costa Rica, Singapore and Madeira left the list – but some of its privileged tax regimes have remained), to the introduction of Normative Instruction n. 1669/2016, regulating the Mutual Agreement Procedure (“MAP”), Brazilian Authorities demonstrated a wider dialogue, not only in theory but in practice, to align Brazilian rules with the international trend – to fight aggressive tax avoidance, but also to reduce compliance costs.

There are many measures yet to be implemented. If we look to, just to mention a few examples,the fixed percentages for deduction of royalty payments and the broad scope of the worldwide taxation regime for companies, Brazil is still apart from its G-20 peers. Given that in 2017 Brazil sent a formal request to join the OECD, additional changes to the country´s international tax policy are expected, although the results of the upcoming presidential election this 2018 may change the scenario.




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Luiz Gustavo A. S. Bichara

bichara@bicharalaw.com.br Idiomas

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec in ligula id sem tristique ultrices eget id neque. Duis enim turpis, tempus at accumsan vitae, lobortis id sapien. Pellentesque nec orci mi, in pharetra ligula. Nulla facilisi. Nulla facilisi. Mauris convallis venenatis massa, quis consectetur felis ornare quis. Sed aliquet nunc ac ante molestie ultricies. Nam pulvinar ultricies bibendum. Vivamus diam leo, faucibus et vehicula eu, molestie sit amet dui. Proin nec orci et elit semper ultrices. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Sed quis urna mi, ac dignissim mauris. Quisque mollis ornare mauris, sed laoreet diam malesuada quis. Proin vel elementum ante. Donec hendrerit arcu ac odio tincidunt posuere. Vestibulum nec risus eu lacus semper viverra.

Luiz Gustavo A. S. Bichara

bichara@bicharalaw.com.br Idiomas

Área de atuação

Consultoria e Contencioso Cíveis e Contratos

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec in ligula id sem tristique ultrices eget id neque. Duis enim turpis, tempus at accumsan vitae, lobortis id sapien. Pellentesque nec orci mi, in pharetra ligula. Nulla facilisi. Nulla facilisi. Mauris convallis venenatis massa, quis consectetur felis ornare quis. Sed aliquet nunc ac ante molestie ultricies. Nam pulvinar ultricies bibendum. Vivamus diam leo, faucibus et vehicula eu, molestie sit amet dui. Proin nec orci et elit semper ultrices. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Sed quis urna mi, ac dignissim mauris. Quisque mollis ornare mauris, sed laoreet diam malesuada quis. Proin vel elementum ante. Donec hendrerit arcu ac odio tincidunt posuere. Vestibulum nec risus eu lacus semper viverra.

Luiz Gustavo A. S. Bichara

bichara@bicharalaw.com.br Idiomas

Área de atuação

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