News

Subsidies for investment – Issue 1.182. On April 26, 2023, Brazil’s high tax court, the Superior Court of Justice (‘STJ’), defined the possibility of excluding tax benefits related to the State Value-Added Tax on the Circulation of Goods and Services (ICMS), such as reduction of the basis for calculation, rate reduction, exemption,[...]

New Brazilian transfer pricing rules can already be used by companies as from fiscal year 2023 At the end of 2022, the Brazilian Federal Revenue Bureau (RFB) published Provisory Measure (MP) 1152/2022, which altered the nation’s transfer pricing rules, bringing them more into line with the rules applicable under the Organization for Economic[...]

Norway and Brazil sign new Treaty to avoid Double Taxation On November 4th, 2022, Brazil signed an international agreement with Norway that, among other things, would eliminate double taxation on income, as well as prevent tax evasion. The purpose of the new agreement is to update and modernize – based on best international practices –[...]

Brazilian Network of Conventions to Avoid Double Taxation Expands As from the beginning of next year (January 1, 2023) Decree 11.109/2022, which was enacted in June of this year, takes effect to avoid double taxation between Brazil and the major Southeast Asian market hub, the country of Singapore. Moreover, in August of this year, Brazil[...]

Brazil’s Federal Supreme Court (STF) Suspends Reduction of Excise Tax (IPI) Granted by Federal Government In February of 2022, the Brazilian Federal Government issued a Decree reducing the federal Excise Tax (IPI) by as much as 25% for most products sold in Brazil.  In April, it issued a new decree upping the IPI reduction to 35%, except for[...]

Brazilian Federal Supreme Court (STF) rules on state value-added tax (ICMS) on electric power and telecom services The Brazilian Federal Constitution established that States may assign different ICMS rates depending on the product or service sold.  Nevertheless, it is necessary to observe the selectiveness of such goods and services since[...]

Superior Court of Justice – STJ overturns late payment fine on federal taxation of imports supported by Drawback-Suspension The STJ recently analyzed an appeal filed by a corporate taxpayer that claimed there was a discrepancy in the case law development regarding application of a late payment fine in cases of non-compliance with[...]

The Supreme Court Has Finally Decided the So-Called “Case of the Century” The Supreme Court has finally decided the case that deals with the exclusion of ICMS tax from the PIS and COFINS tax calculation bases. Although a decision had been entered in March of 2017, a motion for clarification was pending. By majority opinion, the Supreme[...]

Supreme Court Schedules the Trial of the so-called "Tax Case of the Century" The Supreme Court has scheduled the hearing of a motion for clarification of a decision that deals with the exclusion of the ICMS tax from the PIS and COFINS tax calculation bases for April 29, 2021. In 2017, the Supreme Court ruled that the ICMS tax must be[...]

Dutch Government Changes the Classification of Brazilian Interest on Shareholder Equity (“JCP”) According to new directives from the Dutch Government, Interest on Shareholder Equity received by Dutch beneficiaries from Brazilian sources must now be classified as dividends instead of interest. As a consequence, Dutch taxpayers who receive[...]