Brazilian Senate approves agreement with Switzerland to eliminate double taxation

08/Mar/2021 - Economy -

The Brazilian Senate approved on February 24th agreements signed by Brazil with Singapore, Switzerland and the United Arab Emirates to eliminate double taxation in relation to income taxes and prevent tax evasion and omission. Defense cooperation agreements between Brazil and the Dominican Republic and air services between Brazil and Saudi Arabia were also approved. The texts were approved in a symbolic vote and are going to be promulgated by the Congress.

This type of treaty, said Senator Roberto Rocha (PSDB-MA), rapporteur of the proposal at the Economic Affairs Commission (CAE), improves the business environment to attract foreign investors. They also prevent discrimination between foreign and domestic investors and increase legal and tax security.

The absence of double taxation agreements, says Roberto Rocha, affects the competitiveness of Brazilian companies abroad. In addition, this type of agreement results in greater cooperation between tax administrations and facilitates the fight against abusive tax planning (tax avoidance: using loopholes in tax laws to avoid paying due taxes) and tax evasion (evasion) in taxes on income. It also seeks to adapt the standards to the most modern international instruments to which both countries are linked.

Read full article in Portuguese here.

Source: Agência Senado