Brazil’s new tax regime for financial investments, CFCs, and trusts held abroad
By David Roberto R. Soares da Silva
Through Provisional Measure No. 1.171/2023 (MP 1171), published in an extra edition of Brazil’s Official Gazette on April 30, 2023, the Lula Government substantially altered the way financial investments abroad, including those made through offshore companies and trusts, should be taxed. If approved by Congress, the new rules will take effect on January 1, 2024.
The Spanish Beckham Law Tax Regime
By Carlo Lorusso and Almudena Soler
Commonly known as “Beckham law,” the Spanish Special Expat Regime is regulated by the Spanish Personal Income Tax Law. According to Article 93, individuals who acquire their tax residence in Spain might choose to be taxed under Spanish Non-Residents Income Tax rules instead of the Personal Income Tax rules for resident individuals, provided that certain conditions are met.
Foreign trusts and the Inheritance and Donations Tax in the state of São Paulo
By David Roberto R. Soares da Silva
In a recently published ruling, the São Paulo Treasury Department ruled for the first time about the Inheritance and Donations Tax (ITCMD) aspects related to foreign trusts, especially regarding its levy and taxable event.
Tax treatment of foreign trusts in Brazil: A commentary to Bill 145/2022 – Part 2
By David Roberto R. Soares da Silva
Part 2 of this work addresses the income tax rules applicable to transactions involving foreign trusts and Brazilian resident parties, contemplated in the Complementary Law Project No. 145/2022 (PLP 145), submitted by lawmaker Eduardo Cury to Brazil’s House of Representatives in late 2022.
Tax treatment of foreign trusts in Brazil: A commentary to Bill 145/2022 – Part 1
By David Roberto R. Soares da Silva
Without much fanfare, Brazil’s House of Representatives is reviewing a complementary law project that proposes to regulate the effectiveness of foreign trusts in Brazil and their respective tax treatment. The law project has no relation to the bill already under discussion in Congress on the possibility of creating a sort of Brazilian trust (the so-called fiduciary contract).
Brazil’s House Commission Approves CFC Rules for Individuals
By David Roberto R. Soares da Silva
At the end of the 2022 legislative year (Dec. 14), the Finance and Taxation Commission (CFT) of Brazil’s House of Representatives approved a bill that ends the tax deferral of profits from offshore companies to individuals (CFC rules).
Understanding Brazil’s Interest on Equity
By David Roberto R. Soares da Silva
Created in 1996, the interest on equity (juros sobre capital próprio, or JCP) is a mechanism available to certain Brazilian companies to compensate their equity holders in addition to profits and dividends.
Brazil Considers Extraordinary Tax on Large Corporation Profits
By Priscila Lucenti Estevam Using the Covid-19 pandemic as a justification,…
Perspectives on the Possible Dividend Taxation in Brazil
By David Roberto R. Soares da Silva and Roberto P.…
Brazil wants to tax digital services
Brazil’s Congress will review a bill that creates a new tax on digital services provided to local customers. If approved, the new tax should reach major multinational companies that offer digital services to Brazilian customers, including those without a local presence.