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The Brazilian Federal Government sent to Congress, on June 25th 2021, a tax reform proposal focusing on income tax. The proposed bill (PL 2.337/2021) brings relevant changes related to Corporate Income Tax. Afterwards, on September 2nd 2021, the bill was approved, with amendments, by the Chamber of Deputies, and is still subject to approval by[...]

The Brazilian National Congress approved on September 2 the preliminary text of the income tax reform (bill 2,337), which includes important changes from the original draft presented June 25. According to the approved text, the corporate income tax (IRPJ) rate will be reduced from 15% to 8%, after the implementation of an additional[...]

The Brazilian government presented on June 25 the second phase of its proposed tax reform, which aims to change the income tax legislation for individuals and legal entities, as well as establish new rules for the taxation of profits, dividends, and financial investments. Almost a year after the first phase was presented, the new bill will now[...]

In the midst of the Covid-19 pandemic, Brazilian federal government enacted Law No. 14.026/20, establishing a new regulatory framework for basic sanitation in Brazil. It is true that some 35 million Brazilians (more than 16% of the population) simply cannot stay at home and wash their hands to decrease their contamination’s risk, as they do not[...]

It is well known that the constant increase in the number of Internet users has significantly changed various parts of the economy. Of all of them, one of the most affected is marketing, because the Internet has made it possible for companies’ various strategies to be achieved faster and more effectively by directing actions to specific target[...]

CARF – which is the highest administrative tax court within the framework of the Brazilian Ministry of Finance – has recently issued two opinions with regards to the deferral of the taxation of capital gains arising out from the sale of share control of a company by means of closely-end investment funds (Fundos de Investimentos em[...]

Federal Law 13,428 was enacted in March 30th 2017 ruling the reopening of the Brazilian Special Regime for Tax and Exchange Legalization (“RERCT”), taking into consideration the success of its first version, which represented an extra revenue for tax authorities in 2016 of over BRL 45 billion. The main objective of the regime remains the[...]

1. Brief Introduction to the Brazilian Transfer Pricing Legislation The Brazilian transfer pricing rules were introduced into the local legislation by means of Law 9,430, from 1996, coming into force in 1997. Having been inspired by the US legislation, these rules’ main goal is to prevent the shifting of taxable profits from Brazil to other[...]

As an importer operating in Brazil you know how pricey bringing goods into the Country is, particularly in times of economic recession. So even a little saving on tax or custom duties adds up in the end and can make a big difference in competitiveness for your imports. If you are also somewhat familiar with the Brazilian legal system and[...]

On the 24th of October 2016, Brazilian tax authorities have issued a ruling (ADI/RFB 7/2016) determining the levy of Withholding Income Tax (WHT) and Contribution of Intervention on the Public Domain (CIDE), at respective rates of 15% and 10%, upon the payment into share capital of Brazilian companies with intangibles, such as technology[...]