Preface to the Third Edition

Size: px
Start display at page:

Download "Preface to the Third Edition"

Transcription

1 Preface to the Third Edition Brazil Tax Guide for Foreigners has become the leading reference work in the English language for those interested in foreign investment in Brazil. No other two editions have reached multinational companies, tax practitioners, government limited advertising and marketing. address in more detail individual taxation, particularly issues affecting expatriates working and living in Brazil. carnê-leão 1 return for expatriates. An appendix explaining the types of permanent visas available to foreign individuals investing, working, or living in Brazil was also added. But the topics in the second edition are not limited to personal taxation; the Guide also addressed new topics for corporate taxpayers, such as the 2012 changes to the transfer pricing rules, the new social security tax on monthly gross income, new federal special tax regimes, Rio de Janeiro, the new money laundering statute, state taxation of imported goods and online sales, and the municipal taxation of imported services. The third edition updates the topics in the previous editions and expands the content even further. It explains the new CFC rules for corporate taxpayers, as well also covers new considerations relating to imports and exports of goods and services, services, and Supreme Court precedents and tax changes concerning the levy of Information about important tax controversies and disputes has also been added or updated, including the Supreme Court decision on the 2001 CFC rules and the 1 No equivalent translation in English. 15

2 BRAZIL TAX GUIDE FOR FOREIGNERS over domestic tax laws, the Supreme Court ruling on heavy tax penalties; the Court s dividend distributions. Two new topics were added in the tax litigation section: one concerning possible preventive measures the tax administration can take against taxpayers to ensure payment of unpaid taxes, and the other dealing with procedures the tax administration must follow when making an assessment against multiple taxpayers. In addition, two appendices that are not directly connected with taxation were limitada appendix includes an example of a limitada s articles of association in English, with useful comments and footnotes for a better understanding of how this type of entity which was introduced in Brazil s legal system 40 years after the convention was concluded. The convention is an important tool to enforce the full application of tax treaty provisions by Brazil s tax administration, which historically has been very reluctant to cede its taxing powers to international laws. 16

3 Preface to the First and Second Editions Brazilians: October 2, 2009, the day when Rio de Janeiro was chosen to host the Watching the national news that evening when Mr. Jacque Rogge, the president from an envelope, I thought to myself: the coming decade will be unprecedented to Brazil. A few years earlier, in 2004, I was on my honeymoon with my wife in Greece and could see and feel the transformation the country was undergoing because of the Summer Olympic Games taking place within a few weeks. Almost two years before, Brazil was awarded to host the 2014 Soccer (football It did not take long until estimates for investments started to pop up everywhere. If direct investments in infrastructure alone for the 2014 Soccer World Cup were attention during the 2010 s decade, at least from a sport standpoint. almost unharmed. Shifting focus to domestic markets, reducing taxes and promoting local consumption, the country was able to leave the crisis stronger than it had entered it. Many observers and international organizations started to look to Brazil from a different perspective: Brazil was no longer a mere emerging market struggling to export its goods to the rest of the world. It was no longer and Kaká, samba, beautiful beaches and nice music. For years Brazil had been a politically stable country; but now something was different: Brazil was also a strong economy, with growing consuming markets, and very respected by the international community. As a lawyer who assists many foreigners investing in Brazil, it was incredible to see how many companies, and also individuals, became interested investing in the country, taking advantage of what could be one of the greatest investment opportunities of the coming decade. publications and over 20 years of experience in assisting foreign companies to invest in Brazil I have never seen so much interest in the country. And as amazing as it could be, investors were not interested only in business somehow related to the World Cup or the Olympic Games. The interest was for all kind of businesses: real 17

4 BRAZIL TAX GUIDE FOR FOREIGNERS estate, construction, forestry, energy, information technology, sociologic research, software, among many others. wise; many have heard about the complexity of the tax system, the different levels of taxing powers, confusion of tax jurisdictions; strict exchange and currency controls, etc. That is not a concern exclusive to foreigners, but also to local companies, businessmen and entrepreneurs. And unfortunately, all of this is true, at least partially; but it does not mean that someone with no background or experience in Brazilian taxes cannot have some knowledge of how our tax system works. The question I then asked myself was what kind of book I wanted to write. It could be a very technical book on some corporate income tax issues or tax planning; I decided to do something in between: it should include an overview of the Brazilian taxation system and also a deeper review of Brazil s most relevant taxes disputes over each tax. It should also address comments on the most important issues concerning exchange controls as investors need to know not only how to send their money into the country, but also how to get it back home. This would help me reach two different worlds: that of foreigners desiring to understand how Brazil s tax system works so they can come and invest in Brazil, and also that of Brazilian professionals my friends and competitors assisting foreigners doing business in Brazil. Because of the complexity of Brazil s tax system, it is difficult sometimes even for Brazilian professionals to translate clearly and exactly some concepts and details concerning Brazilian tax laws. Also, professionals with different backgrounds and international experience tend to use their own vocabulary, which sometimes makes opinion comparison and comprehension by those uneducated in Brazilian taxes more difficult. This book is an attempt to create some accessible literature on Brazil s tax laws Brazil or elsewhere. 18

5 Introduction Brazil has, probably, one of the most complex tax systems in the world, where federal, state, local governments have taxing powers over transactions expressly contemplated in the federal Constitution. Like few other countries, Brazil s tax system is fundamentally based on the Constitution. The Constitution does not create taxes per se; instead, it lists all taxes that each taxing power is entitled to create by means of their corresponding legislative powers. An exception exists at federal level, where called provisional measures. with immediate effect, where review, amendment and approval are carried out by the Legislative Branch after the act has become valid and enforceable. Over has become routine as they have the advantage of having immediate effect and enforceability. Congress has tried to limit the use of provisional measures by the Executive Branch by approving changes to the Constitution, but in practice the use of measures for tax issues has not been reduced. The complexity of Brazil s tax system also derives from the fact that the Constitution does not limit its provisions to a mere list of taxes that taxing powers can create. It goes further by establishing specific constitutional principles and rules which must be followed by the taxing powers. Some principles and rules apply to the creation or change of tax rules in general; others apply to certain taxes only. such as the one that requires income tax, whenever possible, to observe the An example of a general rule is the one that requires that taxes can be created or changed only by means of a law approved by the Legislative Branch. Even such rule has exceptions in the Constitution: some taxes, like the federal excise have their rates increased or reduced by a mere presidential decree. But, again, The Constitution has one entire chapter (Of the National Tax System exclusively dedicated to the tax system, which includes provisions for federal, state and municipal taxes. This chapter contains no less than 14 different articles with dozens of rules, principles, guidelines, taxpayers rights, limitations, etc. But tax provisions are not limited to the tax system chapter in 19

6 BRAZIL TAX GUIDE FOR FOREIGNERS in the Constitution, such as those dealing with individuals rights and the social security system and taxes. Social security is also an interesting topic. Although not specifically addressed regulated in the social security chapter of the Constitution. That is the case, for example, of some taxes described in this book, such as CSL and COFINS. For Brazilian tax purposes, taxes and social contributions are not the same. impostos government s general obligations and duties and do not have a direct public activity towards the taxpayer, social contributions (contribuições sociais usually associated with some public activity from the government towards the taxpayer, whether directly or indirectly. That is the case, for instance, of the payroll tax paid by individuals and corporate taxpayers to the Social Security; the tax is destined to cover social security rights of individuals and employees, such as retirement, maternity leave, labor accidents, public health, etc. activity towards the taxpayer. That is the case of the CSL; notwithstanding its social contribution name (contribuição social sobre o lucro líquido social very similar tax base, rules and very little in terms of public activity towards taxpayers. Classification of Brazilian taxes and social contributions is not easy and is not limited to the two categories above. Scholars still debate the legal nature of other levies established by the Constitution, but which are not relevant to the purpose of this book. to bypass a constitutional obstacle that requires the federal government to share revenues from federal taxes with states and municipalities. Because the administration is constantly tempted to increase social contributions, leaving true taxes almost unchanged. Examples of this strategy can be noticed with CSL The federal tax system is by far the most relevant to taxpayers in general 20

7 The chart below shows the evolution of Brazil s tax burden in recent years. past years, while state and municipal revenues have been practically stable (except of generating tax revenues. While the Constitution expressly provides means for the federal government to create new taxes, states and municipalities do not have such opportunity. Also, the number of taxes constitutionally authorized for states and federal taxes expressly contemplated in the Constitution (seven 2 ordinary taxes and at least four 3 Besides limitations in the number of taxes they can create, states and municipalities are sometimes limited in terms of the maximum rates they can apply. For instance, is 2%. The minimum rate is important because it limits the municipalities ability attract businesses into their borders. 2 3 section CPRB - Social Security Tax on Gross Income 21

8 BRAZIL TAX GUIDE FOR FOREIGNERS similar to many developed countries, Brazil still offers public services similar, or even worse, than its emerging counterparts. A tax reform would be the natural way to resolve the complexity of the tax a reality; no matter how strong the federal government, state governors and state representatives in Congress would hardly accept waiving their existing rights and revenues in favor of others. That certainly would be used by their local opponents and could represent the end of their political careers. Over the years, many have tried to propose tax reforms: none of them succeeded, rates among Brazilians. The latest serious attempt at tax reform was proposed by reform proposal, which resulted in a letter stating that the tax system should promote exports and stimulating production and productive investments. transactions, a great source of revenues for producing states, such as the southern and southeastern states. States without major industries (most of them in the northern states with many industries want the tax to be payable to the state of origin. In May 2003 the Executive Branch submitted to Congress a constitutional amendment proposal to implement the tax reform. Less than four months later, the most of the points originally proposed by the Executive Branch. But as soon as the proposal reached the Senate, where the Executive Branch could not secure a majority, problems began to arise with respect to proposed ICMS issues and the tax reform was never concluded. Brazil s tax system. But because the administration needs to fund its activities, the only solution is to create new levies and taxes, making the tax system even more complex. That is exactly what happened after the failure to approve the 2003 tax reform. COFINS, a gross receipt tax that for years had been regulated virtually by 22

9 historically very simple and straightforward, into the most complicated Brazilian taxes in terms of rules and regulation. and another set of complex rules and regulations was necessary. The lack of a tax reform caused the government to have very limited room to create a favorable tax environment generally applicable to new investments. As a consequence, the only solution was to start creating special tax regimes excluding certain selected investments from the general tax rules. That is the case of certain infrastructure projects, exporters, ports, civil construction, aircraft, and automobile industries, and others better detailed further in this book. Those special regimes have the disadvantage of not being applicable to all productive investments in general, but only to those sectors the government, at a given moment, decides to encourage. They also have the disadvantage of making tax 23

Brazil. Contact Patricia Hervelha Quintas KPMG in Brazil Tax Partner T: E:

Brazil. Contact Patricia Hervelha Quintas KPMG in Brazil Tax Partner T: E: Brazil Introduction Any individual that is considered to be a resident for tax purposes in Brazil is subject to Brazilian taxation over worldwide income (wages, interest, dividends, rental income, capital

More information

Receita Federal do Brasil (RFB) www.receita.fazenda.gov.br 1 January to 31 December Last working day of April following end of tax year

Receita Federal do Brasil (RFB) www.receita.fazenda.gov.br 1 January to 31 December Last working day of April following end of tax year Worldwide personal tax guide 2013 2014 Brazil Local Information Tax Authority Receita Federal do Brasil (RFB) Website www.receita.fazenda.gov.br Tax Year 1 January to 31 December Tax Return due date: Last

More information

Tax Reform in Brazil and the U.S.

Tax Reform in Brazil and the U.S. Tax Reform in Brazil and the U.S. Devon M. Bodoh Principal in Charge Latin America Markets, Tax KPMG LLP Carlos Eduardo Toro Director KPMG Brazil Agenda Overview of Global Tax Reform Overview Organization

More information

Brazil Round 1. Selected Issues on Brazilian Taxation. Dr. Condorcet Rezende Ulhôa, Canto, Rezende e Guerra - Advogados

Brazil Round 1. Selected Issues on Brazilian Taxation. Dr. Condorcet Rezende Ulhôa, Canto, Rezende e Guerra - Advogados Brazil Round 1 Selected Issues on Brazilian Taxation Dr. Condorcet Rezende Ulhôa, Canto, Rezende e Guerra - Advogados Brazilian Tax System - Introduction Basic principles of Brazilian taxation set forth

More information

Recent developments regarding Mexico s tax treaty network and relevant court precedents

Recent developments regarding Mexico s tax treaty network and relevant court precedents Recent developments regarding Mexico s tax treaty network and relevant court precedents Mexico has a relatively short background on the negotiation and application of treaties for the avoidance of double

More information

SYLLABUS BASICS OF INTERNATIONAL TAXATION. ! States levy taxes by virtue of their sovereignty

SYLLABUS BASICS OF INTERNATIONAL TAXATION. ! States levy taxes by virtue of their sovereignty SYLLABUS BASICS OF INTERNATIONAL TAXATION! States levy taxes by virtue of their sovereignty! Tax sovereignty, however, is not unlimited. There must either be a personal or an objective connection between

More information

Brazilian interest payments on net equity (Juros sobre o capital próprio): an international perspective

Brazilian interest payments on net equity (Juros sobre o capital próprio): an international perspective Brazilian interest payments on net equity (Juros sobre o capital próprio): an international perspective 1. Interest on Equity and Dividends: the Brazilian perspective Brazilian companies have two main

More information

Chapter 1 Legislative Background and Tax Reform

Chapter 1 Legislative Background and Tax Reform Chapter 1 Legislative Background and Tax Reform The Chinese tax system has recently developed closely to the economic growth of the country. The entry of China into the World Trade Organization (WTO) and

More information

TAXATION AND FOREIGN EXCHANGE

TAXATION AND FOREIGN EXCHANGE This appendix contains a summary of laws and regulations in respect of taxation and foreign exchange in Hong Kong and the PRC. I. TAXATION IN THE PRC 1. Taxes Applicable to Joint-Stock Limited Companies

More information

Italian corporate income tax for foreign investors

Italian corporate income tax for foreign investors Italian corporate income tax for foreign investors 05 October 15 Corporate income tax Italian corporate income tax (imposta sul reddito delle società, or IRES) is due by resident companies on their worldwide

More information

Expanding into Brazil

Expanding into Brazil Expanding into Brazil Support for your Business kpmg.ie Expanding into Brazil 1 Are you looking to expand your business into Brazil? Dynamic Irish businesses are looking to new markets to expand and grow.

More information

CUBAN FOREIGN INVESTMENT LEGISLATION

CUBAN FOREIGN INVESTMENT LEGISLATION CUBAN FOREIGN INVESTMENT LEGISLATION Decree Law 50 of 1982 ( Decree Law 50 ) was Cuba s first foreign investment act authorizing the formation of international joint-ventures with foreign investors. In

More information

Legal Aspects of Doing Business in Russia

Legal Aspects of Doing Business in Russia Legal Aspects of Doing Business in Russia Dmitry Labin Professor, Moscow Institute of International Relations (MGIMO University) Senior Counsel, Danilov & Konradi LLP ROADSHOW Portugal Global, 22 September

More information

TAX COURSE SELECTION ADVICE (JD LEVEL COURSES)

TAX COURSE SELECTION ADVICE (JD LEVEL COURSES) General Advice TAX COURSE SELECTION ADVICE (JD LEVEL COURSES) 1. What is the value of Federal Income Taxation? Federal Income Taxation is, both conceptually and practically, the foundational course in

More information

Macau SAR Tax Profile

Macau SAR Tax Profile Macau SAR Tax Profile Produced in conjunction with the KPMG Asia Pacific Tax Centre Updated: June 2015 Contents 1 Corporate Income Tax 1 2 Income Tax Treaties for the Avoidance of Double Taxation 5 3 Indirect

More information

NEHRING E ASSOCIADOS ADVOCACIA

NEHRING E ASSOCIADOS ADVOCACIA CARLOS NEHRING NETTO SUELI AVELLAR FONSECA IVA CHIABRANDO MÁRCIO BELLOCCHI ALESSANDRA MONTEBELO GONSALES CRISTIANO AFONSO NATIVIDADE DANIEL SIBILLE EMERSON SOARES MENDES FRANCISCO NAPOLI JOÃO BURKE PASSOS

More information

CYPRUS INTERNATIONAL TRUSTS. A. THEORETICAL BACKGROUND Cyprus International Trusts very much follow the way UK trusts operate.

CYPRUS INTERNATIONAL TRUSTS. A. THEORETICAL BACKGROUND Cyprus International Trusts very much follow the way UK trusts operate. CYPRUS INTERNATIONAL TRUSTS Cypriot trust law has been shaped on the basis of UK law and the Cyprus Trustee Law Cap.193 emulates the English Trustee Act 1925. Concerning the current Cyprus legislative

More information

Doing Business in Brazil: Common Pitfalls & How to Avoid Them

Doing Business in Brazil: Common Pitfalls & How to Avoid Them Doing Business in Brazil: Common Pitfalls & How to Avoid Them The Opportunity Why Brazil? 2 Overview Average GDP growth rate of over 5% World s 7 th largest economy Population of 193 million Sophisticated

More information

Mexico. Rodolfo Trampe, Jorge Díaz, José Palomar and Carlos López. Von Wobeser y Sierra, S.C.

Mexico. Rodolfo Trampe, Jorge Díaz, José Palomar and Carlos López. Von Wobeser y Sierra, S.C. Mexico Rodolfo Trampe, Jorge Díaz, José Palomar and Carlos López Market overview 1 What kinds of outsourcing take place in your jurisdiction? In Mexico, a subcontracting regime (understood as the regime

More information

(1) Main corporate aspects of the Limitadas and S.As: type of corporation Limitada S.A.

(1) Main corporate aspects of the Limitadas and S.As: type of corporation Limitada S.A. DOING BUSINESS IN BRAZIL Brazil In 2014, Brazil was in the global spotlight by hosting the world s greatest sporting tournament: the FIFA World Cup. In 2016, the city of Rio de Janeiro will also be hosting

More information

Brazilian Taxes. Guido Vinci Veirano & Advogados Associados March 2002

Brazilian Taxes. Guido Vinci Veirano & Advogados Associados March 2002 Brazilian Taxes Guido Vinci Veirano & Advogados Associados March 2002 Introduction - Legal Standards Federal Constitution of 1988 National Tax Code of 1966 ("CTN") Constitution: establishes the taxing

More information

Tax law. Cultural differences. Language. Management and relationship of the boss to employees. Financial accounting. Transfer of foreign exchange

Tax law. Cultural differences. Language. Management and relationship of the boss to employees. Financial accounting. Transfer of foreign exchange Brazil In the meantime, German industry can look back on a considerable tradition in Brazil which has developed organically. In Latin America, German companies and their products have an exceptionally

More information

Starting business in Russia. Legal and tax framework. Moscow 2015

Starting business in Russia. Legal and tax framework. Moscow 2015 Starting business in Russia. Legal and tax framework Moscow 2015 2 Index LLC v Representation 3 Request for tax assistance for a prospect client (questions on taxation)7 Direct tax regime 7 Indirect tax

More information

Global Transfer Pricing Review

Global Transfer Pricing Review GLOBAL TRANSFER PRICING SERVICES Global Transfer Pricing Review Mexico kpmg.com TAX 2 Global Transfer Pricing Review Mexico KPMG observation Mexico has been very active in transfer pricing. The tax authority

More information

Conflicts and Issues under The U.S. - India Tax Treaty

Conflicts and Issues under The U.S. - India Tax Treaty TAX TREATIES Conflicts and Issues under The U.S. - India Tax Treaty Shefali Goradia*, Carol P. Tello** When the income tax treaty between India and the United States ( Treaty ) was negotiated in the late

More information

C O R P O R A T E I N C O M E T A X R E F O R M : T A X S I M P L I F I C A T I O N A N D I N V E S T M E N T P R O M O T I O N

C O R P O R A T E I N C O M E T A X R E F O R M : T A X S I M P L I F I C A T I O N A N D I N V E S T M E N T P R O M O T I O N i N. 4 / 1 4 C O R P O R A T E I N C O M E T A X R E F O R M : T A X S I M P L I F I C A T I O N A N D I N V E S T M E N T P R O M O T I O N TABLE OF CONTENTS I. A B S T R A C T................................

More information

Dealing with tax complexities in Brazil

Dealing with tax complexities in Brazil Dealing with tax complexities in Brazil By: Dudley Juana Anderson Dutra AGENDA Tax complexities in Brazil 1. Overview of main taxes in Brazil IRPJ and CSLL Gross Revenue Taxes: PIS and COFINS Indirect

More information

Guide to Japanese Taxes

Guide to Japanese Taxes Guide to Japanese Taxes CONTENTS 1. Introduction --------------------------------------------------------------------------------------------- 1 (1) Principle of Taxation under the Law (2) Self-Assessment

More information

TO: OUR FRIENDS AND PROSPECTIVE CLIENTS FROM: THOMAS WILLIAMS, CPA RE: U.S. INCOME TAX ISSUES OF FOREIGN NATIONALS DATE: AS OF JANUARY 1, 2010

TO: OUR FRIENDS AND PROSPECTIVE CLIENTS FROM: THOMAS WILLIAMS, CPA RE: U.S. INCOME TAX ISSUES OF FOREIGN NATIONALS DATE: AS OF JANUARY 1, 2010 THOMAS WILLIAMS CPA, PLLC TO: OUR FRIENDS AND PROSPECTIVE CLIENTS FROM: THOMAS WILLIAMS, CPA RE: U.S. INCOME TAX ISSUES OF FOREIGN NATIONALS DATE: AS OF JANUARY 1, 2010 Dear Friends: The following is an

More information

GENERAL OVERVIEW OF TAXES, LEVIED IN UKRAINE

GENERAL OVERVIEW OF TAXES, LEVIED IN UKRAINE GENERAL OVERVIEW OF TAXES, LEVIED IN UKRAINE General information on the tax system of Ukraine For the purposes of further discussion we feel it appropriate to provide first brief overview of the tax system

More information

Overview of the Brazilian Tax System

Overview of the Brazilian Tax System Brazil Upstream Guide Overview of the Brazilian Tax System Upstream taxation and foreign investment 2 I. Overview of the Brazilian Tax System... 3 I.1 Introduction... 3 I.1.A Federal Taxes... 4 I.1.A.1.

More information

INTERNATIONAL TIDBIT: Reporting Foreign Investments New Requirements for the 2013 Tax Year

INTERNATIONAL TIDBIT: Reporting Foreign Investments New Requirements for the 2013 Tax Year INTERNATIONAL TIDBIT: Reporting Foreign Investments New Requirements for the 2013 Tax Year The last few years have seen increased emphasis on individuals reporting about their foreign investments and penalizing

More information

EXECUTIVE SUMMARY. Associated Industries Of Florida

EXECUTIVE SUMMARY. Associated Industries Of Florida EXECUTIVE SUMMARY Proposed "WORKERS' COMPENSATION REFORM ACT OF 2001 Recommended by Associated Industries Of Florida There is a major crisis looming on the horizon on the Florida's Workers'' Compensation

More information

Costa Rica. Key messages Extended business travelers are likely to be taxed on employment income relating to their Costa Rican work days.

Costa Rica. Key messages Extended business travelers are likely to be taxed on employment income relating to their Costa Rican work days. Costa Rica Introduction A person s liability to Costa Rican income tax is determined by the territoriality principle, in opposition to the method of taxation based on residence status. However, residents

More information

www.pwc.com/ao Adding value Angolan Tax reform: Be prepared 5 March 2012

www.pwc.com/ao Adding value Angolan Tax reform: Be prepared 5 March 2012 www.pwc.com/ao Adding value Angolan Tax reform: Be prepared 5 March 2012 Index Background 3 Investment Income Tax 5 Stamp Tax 8 Consumption Tax 13 PwC Contacts 16 Be prepared PwC 2 Background Background

More information

CYPRUS TAX CONSIDERATIONS

CYPRUS TAX CONSIDERATIONS TAXATION The following summary of material Cyprus, US federal income and United Kingdom tax consequences of ownership of the GDRs is based upon laws, regulations, decrees, rulings, income tax conventions

More information

A 360-Degree look at Secondment tax issues: China and the United States Corporate China Alert - 19 August 2013

A 360-Degree look at Secondment tax issues: China and the United States Corporate China Alert - 19 August 2013 A 360-Degree look at Secondment tax issues: China and the United States Corporate China Alert - 19 August 2013 In this article, Roberta Chang discusses the recent guidance issued by the Chinese State Administration

More information

Income Tax and Social Insurance

Income Tax and Social Insurance The Global Employer: Focus on Global Immigration & Mobility Income Tax and Social Insurance An employee who works abroad is always concerned about the possibility of increased income taxation and social

More information

Telecommunications & Methods for Avoiding Double Taxation. By Paul DePasquale and Alyssa Varley, Baker & McKenzie Zurich.

Telecommunications & Methods for Avoiding Double Taxation. By Paul DePasquale and Alyssa Varley, Baker & McKenzie Zurich. Telecommunications & Methods for Avoiding Double Taxation By Paul DePasquale and Alyssa Varley, Baker & McKenzie Zurich [Abstract] Cross-border business and investment activity invariably involves the

More information

Tax Foundation taxfoundation_episode_21 Page 1 of 7 Chris Atkins and Arthur Rosen

Tax Foundation taxfoundation_episode_21 Page 1 of 7 Chris Atkins and Arthur Rosen Tax Foundation taxfoundation_episode_21 Page 1 of 7 Hello. I m Chris Atkins, Staff Attorney at the Tax Foundation. Today s guest is Arthur Rosen. Art is a partner in the New York City office of the law

More information

CHAPTER 241 TAXATION OF BANKS AND OTHER FINANCIAL CORPORATIONS

CHAPTER 241 TAXATION OF BANKS AND OTHER FINANCIAL CORPORATIONS TAXATION OF BANKS AND OTHER FINANCIAL CORPORATIONS 241-1 CHAPTER 241 TAXATION OF BANKS AND OTHER FINANCIAL CORPORATIONS Section 241-1 Definitions 241-1.5 Time of application of tax and other provisions

More information

The I.R.S. Amnesty Program & The New Streamlined Filing Compliance Procedures

The I.R.S. Amnesty Program & The New Streamlined Filing Compliance Procedures TOPICS IN THE SEMINAR INCLUDE: The I.R.S. Amnesty Program & The New Streamlined Filing Compliance Procedures By Richard S. Lehman, Esq. TAX ATTORNEY www.lehmantaxlaw.com SEMINAR INTRODUCTION by Richard

More information

Lawyers of LF «Dmitrieva & Partners» have prepared the list of top news in the field of taxation for the last two weeks.

Lawyers of LF «Dmitrieva & Partners» have prepared the list of top news in the field of taxation for the last two weeks. REVIEW OF THE MAIN EVENTS IN THE SPHERE OF TAXATION Lawyers of LF «Dmitrieva & Partners» have prepared the list of top news in the field of taxation for the last two weeks. The amount of daily business

More information

Protecting Americans from Tax Hikes Act of 2015: Effects on Taxation of Investment in US Real Estate

Protecting Americans from Tax Hikes Act of 2015: Effects on Taxation of Investment in US Real Estate Legal Update December 21, 2015 Protecting Americans from Tax Hikes Act of 2015: Effects on Taxation of Investment in On December 18, 2015, Congress passed and President Obama signed into law the Protecting

More information

CHAPTER 1 ESTABLISHING A NEW BUSINESS IN THE UNITED STATES

CHAPTER 1 ESTABLISHING A NEW BUSINESS IN THE UNITED STATES CHAPTER 1 ESTABLISHING A NEW BUSINESS IN THE UNITED STATES 1. CHOICE OF ENTITY A foreign investor may choose from a variety of forms of entities to do business in the United States. Such forms of entities

More information

Overview of taxation and main tax concerns for Japanese companies in Brazil

Overview of taxation and main tax concerns for Japanese companies in Brazil Overview of taxation and main tax concerns for Japanese companies in Brazil April 15, 2015 Jorge N. Lopes Jr. 1. Brazilian Main Taxes (1) Direct Taxes on Brazilian Operations Direct Taxes on Brazilian

More information

TAXATION ON SOFTWARE Dispute Resolution nº 27/2008 of Brazilian Federal Revenue

TAXATION ON SOFTWARE Dispute Resolution nº 27/2008 of Brazilian Federal Revenue Brasil 01452-002 SP TAXATION ON SOFTWARE Dispute Resolution nº 27/2008 of Brazilian Federal Revenue In the taxation field, the application given to software still involves some controversy that is related

More information

U.S. Taxation of Foreign Investors

U.S. Taxation of Foreign Investors PART OF THE LEHMAN TAX LAW KNOWLEDGE BASE SERIES United States Taxation Of Investors U.S. Taxation of Foreign Investors Non Resident Alien Individuals & Foreign Corporations By Richard S. Lehman Esq. TAX

More information

" HOUSE OF REPRESENTATIVES! ADDITIONAL PROTOCOL MODIFYING THE INCOME TAX CONVENTION WITH MEXICO

 HOUSE OF REPRESENTATIVES! ADDITIONAL PROTOCOL MODIFYING THE INCOME TAX CONVENTION WITH MEXICO 104TH CONGRESS EXEC. REPT. " HOUSE OF REPRESENTATIVES! 1st Session SENATE 104 6 ADDITIONAL PROTOCOL MODIFYING THE INCOME TAX CONVENTION WITH MEXICO AUGUST 10 (legislative day, JULY 10), 1995. Ordered to

More information

FEDERAL TAXATION OF INTERNATIONAL TRANSACTIONS

FEDERAL TAXATION OF INTERNATIONAL TRANSACTIONS Chapter 10 FEDERAL TAXATION OF INTERNATIONAL TRANSACTIONS Daniel Cassidy 1 10.1 INTRODUCTION Foreign companies with U.S. business transactions face various layers of taxation. These include income, sales,

More information

QUESTIONS. 1. Which of the entities are considered to be financial institutions as defined in T.C.A. 67-4-2004(8) 2?

QUESTIONS. 1. Which of the entities are considered to be financial institutions as defined in T.C.A. 67-4-2004(8) 2? TENNESSEE DEPARTMENT OF REVENUE REVENUE RULING #00-23 WARNING Revenue rulings are not binding on the Department. This presentation of the ruling in a redacted form is information only. Rulings are made

More information

Tax Impacts to Structure Investments in Brazil Debt or Equity. Andrea Bazzo Lauletta November 2012

Tax Impacts to Structure Investments in Brazil Debt or Equity. Andrea Bazzo Lauletta November 2012 Tax Impacts to Structure Investments in Brazil Debt or Equity Andrea Bazzo Lauletta November 2012 Introduction Brazilian Scenario for Non-Resident Investments Brazil has a specific set of rules for non-resident

More information

Effects of the Cancellation of Italian Companies from the Companies Register and the Succession of the Shareholders 1

Effects of the Cancellation of Italian Companies from the Companies Register and the Succession of the Shareholders 1 Effects of the Cancellation of Italian Companies from the Companies Register and the Succession of the Shareholders 1 BY FRANCESCA PETRONIO & FABIO COZZI June 2013 During the last three years, the Italian

More information

tax bulletin State of Play: International Tax Policy in the 111 th Congress www.venable.com AUGUST 2010 By E. Ray Beeman and Samuel Olchyk

tax bulletin State of Play: International Tax Policy in the 111 th Congress www.venable.com AUGUST 2010 By E. Ray Beeman and Samuel Olchyk tax bulletin www.venable.com AUGUST 2010 State of Play: International Tax Policy in the 111 th Congress By E. Ray Beeman and Samuel Olchyk The 111th Congress will soon return from its summer recess to

More information

Brazil Tax Seminar. Eduardo Telles Partner

Brazil Tax Seminar. Eduardo Telles Partner Brazil Tax Seminar Brazilian Tax Development Impacting Charters Agreements Ivan Tauil Partner 55 21 2127 4210 itauil@mayerbrown.com Eduardo Telles Partner 55 21 2127 4210 etelles@mayerbrown.com October

More information

MALTA Jurisdictional Guide

MALTA Jurisdictional Guide MALTA Jurisdictional Guide GENERAL INFORMATION The Republic of Malta is situated in the centre of the Mediterranean, south of Sicily, east of Tunisia and north of Libya. Malta gained its independence from

More information

Mexico. Key messages Extended business travelers are likely to be taxed on employment income relating to their Mexican workdays.

Mexico. Key messages Extended business travelers are likely to be taxed on employment income relating to their Mexican workdays. Mexico Introduction A person s liability for Mexican tax is determined by residence status for taxation purposes and the source of income derived by the individual. Contact Nora Solano KPMG in Mexico Director

More information

MEXICO S FLAT TAX (IETU) AND HOW IT AFFECTS U.S. INVESTORS IN MEXICAN REAL ESTATE PROJECTS. By Enrique Hernandez-Pulido 1

MEXICO S FLAT TAX (IETU) AND HOW IT AFFECTS U.S. INVESTORS IN MEXICAN REAL ESTATE PROJECTS. By Enrique Hernandez-Pulido 1 MEXICO S FLAT TAX (IETU) AND HOW IT AFFECTS U.S. INVESTORS IN MEXICAN REAL ESTATE PROJECTS Introduction. By Enrique Hernandez-Pulido 1 As of January 1, 2008, a new Flat Tax know as IETU 2 came into effect

More information

PRESENTATION ON THE FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) FOR CONSULTATIONS WITH THE INDUSTRY

PRESENTATION ON THE FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) FOR CONSULTATIONS WITH THE INDUSTRY PRESENTATION ON THE FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) FOR CONSULTATIONS WITH THE INDUSTRY Prepared for the Meeting with ECCU Non-Bank Financial Institutions February 2014 EASTERN CARIBBEAN CENTRAL

More information

Presidential Decree Law No. 01/P, March 17, 2008

Presidential Decree Law No. 01/P, March 17, 2008 Contents Section I... General Provisions... Section II... Foreign Exchange Trading... Section III... Opening and using of bank deposit accounts in foreign currency by a resident and a nonresident of the

More information

Contents. Application. Summary

Contents. Application. Summary NO.: IT-99R5 (Consolidated) DATE: See Bulletin Revisions section SUBJECT: REFERENCE: INCOME TAX ACT Legal and Accounting Fees Paragraph 18(1)(a) (also sections 9 and 239; subsections 13(12), 20(9), and

More information

Tax. Pinhas Rubin, Daniel Paserman /29/

Tax. Pinhas Rubin, Daniel Paserman /29/ Tax Gornitzky & Co. Pinhas Rubin, Daniel Paserman /29/ Trends in Israeli Tax Law Change of a Business Model - International Acquisitions of Israeli Hi-Tech Companies International corporations are extremely

More information

Tax Arbitration: Protection for Foreign Investors from Unforeseen Tax Claims. Edwin Vanderbruggen

Tax Arbitration: Protection for Foreign Investors from Unforeseen Tax Claims. Edwin Vanderbruggen Tax Arbitration: Protection for Foreign Investors from Unforeseen Tax Claims Edwin Vanderbruggen Auckland, 23 January 2013 We are a specialized law and tax advisory firm in Southeast Asia with over 60

More information

Tax Research: Understanding Sources of Tax Law (Why my IRC beats your Rev Proc!)

Tax Research: Understanding Sources of Tax Law (Why my IRC beats your Rev Proc!) Tax Research: Understanding Sources of Tax Law (Why my IRC beats your Rev Proc!) Understanding Federal Statutes and Legislation Federal statutes provide the foundation of the tax system in the United States.

More information

Tax Considerations Of Foreign

Tax Considerations Of Foreign FIRPTA requires that a buyer withhold 10% of the gross sales price, subject to certain exceptions, and send it to the Internal Revenue Service if the seller is a foreign person. U.S. Taxes Foreign investors

More information

TAXATION OF INTEREST, DIVIDENDS AND CAPITAL GAINS IN CYPRUS

TAXATION OF INTEREST, DIVIDENDS AND CAPITAL GAINS IN CYPRUS TAXATION OF INTEREST, DIVIDENDS AND CAPITAL GAINS IN CYPRUS LAWS AND DECREES The Income Tax (Amendment) Law of 2005 The Special Contribution for Defence (Amendment) Law of 2004 The Assessment and Collection

More information

Number: 200636085 Release Date: 9/8/2006 Internal Revenue Service. Department of the Treasury Washington, DC 20224. Index Number: 162.

Number: 200636085 Release Date: 9/8/2006 Internal Revenue Service. Department of the Treasury Washington, DC 20224. Index Number: 162. Number: 200636085 Release Date: 9/8/2006 Internal Revenue Service Index Number: 162.04-03 ---------------------------- ------------------------------------------------- ---------------------------- -----------------------

More information

2.2. By whom and to which authority/authorities the application must be made? 2.3. What documents must be attached to the application?

2.2. By whom and to which authority/authorities the application must be made? 2.3. What documents must be attached to the application? IBA REAL ESTATE COMMITTEE REAL ESTATE IN A NUTSHELL: MEXICO OWNERSHIP/RESTRICTIONS ON OWNERSHIP BY NON-RESIDENTS Name: LUIS MORENO, GERARDO CARRILLO Law Firm and City/Country: HAYNES & BOONE, S.C., MEXICO

More information

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT AND THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT AND THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE EN EN EN EUROPEAN COMMISSION Brussels, COM(2010) COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT AND THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE Removing cross-border tax obstacles

More information

Audit and Permitted Non-Audit Services Pre-Approval Policy (Pertaining to the Company s Independent Auditor)

Audit and Permitted Non-Audit Services Pre-Approval Policy (Pertaining to the Company s Independent Auditor) Audit and Permitted Non-Audit Services Pre-Approval Policy (Pertaining to the Company s Independent Auditor) Statement of Principles Pursuant to the Sarbanes-Oxley Act of 2002 (the Act ) and in accordance

More information

Business Organization\Tax Structure

Business Organization\Tax Structure Business Organization\Tax Structure One of the first decisions a new business owner faces is choosing a structure for the business. Businesses range in size and complexity, from someone who is self-employed

More information

Debt collection in Russia

Debt collection in Russia By Andrey Zelenin, Lidings Law Firm Debt collection in Russia Foreign companies doing business in Russia generally have several main options of dispute resolution to choose: (i) international commercial

More information

Budget 2016 CHANGES IN DUTCH TAXATION FOR 2016. www.fi sconti.com

Budget 2016 CHANGES IN DUTCH TAXATION FOR 2016. www.fi sconti.com Budget 2016 CHANGES IN DUTCH TAXATION FOR 2016 www.fi sconti.com Table of contents Changes in Dutch payroll and income tax Tax credits and rates in 2016 ----------- 3 Emigration of substantial interest

More information

Public Financial Disclosure A Guide to Reporting Selected Financial Instruments

Public Financial Disclosure A Guide to Reporting Selected Financial Instruments Public Financial Disclosure A Guide to Reporting Selected Financial Instruments TABLE OF CONTENTS AMERICAN DEPOSITARY RECEIPT 1 CASH BALANCE PENSION PLAN 2 COMMON TRUST FUND OF A BANK 4 EMPLOYEE STOCK

More information

TTN Conference Buenos Aires 2014. Major International Tax Aspects of the Chilean Tax Reform

TTN Conference Buenos Aires 2014. Major International Tax Aspects of the Chilean Tax Reform TTN Conference Buenos Aires 2014 Major International Tax Aspects of the Chilean Tax Reform Outline 1. New source rules on Chilean debt instruments & interest 2. Obligation to report investments made abroad

More information

Lawyers of LF «Dmitrieva & Partners» have prepared the list of top news in the field of taxation for the last two weeks

Lawyers of LF «Dmitrieva & Partners» have prepared the list of top news in the field of taxation for the last two weeks REVIEW OF THE MAIN EVENTS IN THE SPHERE OF TAXATION Lawyers of LF «Dmitrieva & Partners» have prepared the list of top news in the field of taxation for the last two weeks The State Fiscal Service of Ukraine

More information

450 Lexington Ave 1350 I Street, NW Suite 3320 Suite 1100 New York, NY 10017 Washington, DC 20005

450 Lexington Ave 1350 I Street, NW Suite 3320 Suite 1100 New York, NY 10017 Washington, DC 20005 Eric van Aalst Mark Riedy Citco Corporate Services Inc. Andrews Kurth LLP 450 Lexington Ave 1350 I Street, NW Suite 3320 Suite 1100 New York, NY 10017 Washington, DC 20005 Structuring International Operations

More information

Tax System Challenges in the 21 st Century

Tax System Challenges in the 21 st Century Tax System Challenges in the 21 st Century American taxpayers paid about $1.9 trillion in combined federal taxes, including income, payroll, and excise taxes, in fiscal year 2004. These taxes, along with

More information

Tax Issues in Employment and Remuneration. BDO Richfield Advisory Ltd Tax & Legal Services

Tax Issues in Employment and Remuneration. BDO Richfield Advisory Ltd Tax & Legal Services Tax Issues in Employment and Remuneration Andrew Jackomos Senior Partner BDO Richfield Advisory Limited 13 February 2009 Taxes are what we pay for civilised society. Oliver Wendell Holmes, Jr, Compania

More information

USA Taxation. 3.1 Taxation of funds. Taxation of regulated investment companies: income tax

USA Taxation. 3.1 Taxation of funds. Taxation of regulated investment companies: income tax USA Taxation FUNDS AND FUND MANAGEMENT 2010 3.1 Taxation of funds Taxation of regulated investment companies: income tax Investment companies in the United States (US) are structured either as openend

More information

Evaluating Brazilian Electricity Regulation for Legitimacy, Independence and Accountability

Evaluating Brazilian Electricity Regulation for Legitimacy, Independence and Accountability Evaluating Brazilian Electricity Regulation for Legitimacy, Independence and Accountability Workshop: Regulation and Finance of Infrastructure in Latin America: Experience on Case Development São Paulo,

More information

Appendix 3. The metric

Appendix 3. The metric Appendix 3 A consistent and useful effective tax rate methodology to assess the global tax performance of multinationals in relation to Australian-linked business operations 1 The purpose of this paper

More information

Gambling Tax Reform 2014

Gambling Tax Reform 2014 Gambling Tax Reform 2014 Information Note December 2013 1. Contents Page Foreword 3 Section 1 Introduction 4 Section 2 Liability for the Duties 6 Section 3 Regulatory Matters 9 Section 4 Definition of

More information

Taxing the cloud A foggy endeavour

Taxing the cloud A foggy endeavour www.pwc.com Taxing the cloud A foggy endeavour The latest in our series on getting the most out of your cloud computing strategies February 2014 Taxing the cloud With a name as nebulous as The Cloud, it

More information

Chapter 6: Value Added Tax A Major Replacement Alternative

Chapter 6: Value Added Tax A Major Replacement Alternative Chapter 6: Value Added Tax A Major Replacement Alternative Introduction In its authorizing legislation, the Legislature required the Committee to be guided by the principle of neutrality in developing

More information

CLIENT INFORMATION: GUIDELINES ON ADMINISTRATION & BILLING

CLIENT INFORMATION: GUIDELINES ON ADMINISTRATION & BILLING CLIENT INFORMATION: GUIDELINES ON ADMINISTRATION & BILLING As updated from time-to-time for billing rates and responsible attorney and, following actual notice to the client. This agreement forms the basis

More information

Reform of Taxation of Foreign Profits. The Worldwide Debt Cap. July 2009. Osborne Clarke

Reform of Taxation of Foreign Profits. The Worldwide Debt Cap. July 2009. Osborne Clarke Reform of Taxation of Foreign Profits The Worldwide Debt Cap July 2009 Taxation of Foreign Profits Taxation of Foreign Profits Proposals It has been confirmed that certain elements of the taxation of foreign

More information

JAN 2 2 2016. amended by adding a new section to be appropriately designated. costs of construction and operation incurred by a contractor

JAN 2 2 2016. amended by adding a new section to be appropriately designated. costs of construction and operation incurred by a contractor THE SENATE WENTY-EIGHTH LEGISLATURE, 0 STATE OF HAWAII JAN 0 S.B. NO. - A BILL FOR AN ACT RELATING TO TAXATION BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: SECTION. Chapter, Hawaii Revised

More information

Global Stock Options Survey. Eckert Seamans Cherin & Mellott, LLC Pennsylvania, U.S.A.

Global Stock Options Survey. Eckert Seamans Cherin & Mellott, LLC Pennsylvania, U.S.A. Global Stock Options Survey Eckert Seamans Cherin & Mellott, LLC Pennsylvania, U.S.A. CONTACT INFORMATION: Paul M. Yenerall Eckert Seamans Cherin & Mellott, LLC U.S. Steel Tower 600 Grant Street, 44th

More information

2015 SENATE BILL 503

2015 SENATE BILL 503 0 0 LEGISLATURE 0 SENATE BILL 0 January, 0 Introduced by Senators MARKLEIN, GUDEX, OLSEN and ROTH, cosponsored by Representatives MACCO, KOOYENGA, KATSMA, JARCHOW, NOVAK, TAUCHEN, DUCHOW, KNODL, E. BROOKS,

More information

Business Organization\Tax Structure

Business Organization\Tax Structure Business Organization\Tax Structure Kansas Secretary of State s Office Business Services Division First Floor, Memorial Hall 120 S.W. 10th Avenue Topeka, KS 66612-1594 Phone: (785) 296-4564 Fax: (785)

More information

State Tax Return. Tax Amnesty Update

State Tax Return. Tax Amnesty Update June 2009 State Tax Return Volume 16 Number 2 Tax Amnesty Update Karen H. Currie Dallas (214) 969-5285 We return to this space to update you on the ever-changing world of tax amnesty. The economic challenges

More information

.and finally Spain has a new Gambling law!

.and finally Spain has a new Gambling law! .and finally Spain has a new Gambling law! By Blanca Escribano, Partner at Olswang Spain LLP and Ellen Martínez, Associate at Olswang Spain LLP. June 2011 On May 28, the long awaited Gambling Law was finally

More information

INDIRECT TAXES. Some of the indirect taxes are:

INDIRECT TAXES. Some of the indirect taxes are: INDIRECT TAXES Indirect Taxes are the charges levied by the State on consumption, expenditure, privilege, or right but not on income or property. Customs duties levied on imports, excise duties on production,

More information

COST AND FEE ALLOCATION IN CIVIL PROCEDURE

COST AND FEE ALLOCATION IN CIVIL PROCEDURE International Academy of Comparative Law 18th World Congress Washington D.C. July 21-31, 2010 Topic II.C.1 COST AND FEE ALLOCATION IN CIVIL PROCEDURE National Reporter - Slovenia: Nina Betetto Supreme

More information

FOREIGNERS DOING BUSINESS IN THE UNITED STATES U.S. Taxation Overview

FOREIGNERS DOING BUSINESS IN THE UNITED STATES U.S. Taxation Overview FOREIGNERS DOING BUSINESS IN THE UNITED STATES U.S. Taxation Overview The U.S. economic activities of foreign individuals and entities are classified as inbound transactions while the foreign economic

More information

TAX ISSUES RAISED BY LNG PROJECTS

TAX ISSUES RAISED BY LNG PROJECTS TAX ISSUES RAISED BY LNG PROJECTS Jon Lobb Baker Botts L.L.P. ABSTRACT This paper discusses tax issues that may be encountered by a company investing in an LNG project. 1. Income Taxes A seller's income

More information

1. Nonresident Alien or Resident Alien?

1. Nonresident Alien or Resident Alien? U..S.. Tax Guiide for Non-Resiidents Table of Contents A. U.S. INCOME TAXES ON NON-RESIDENTS 1. Nonresident Alien or Resident Alien? o Nonresident Aliens o Resident Aliens Green Card Test Substantial Presence

More information

Goods & Services Tax Guide on E-Commerce

Goods & Services Tax Guide on E-Commerce INLAND REVENUE AUTHORITY OF SINGAPORE Goods & Services Tax Guide on E-Commerce This guide is meant to assist businesses in understanding the GST treatment on E- Commerce. Published 2 nd Edition 31 August

More information

70. Switzerland. Other regulations

70. Switzerland. Other regulations 70. Switzerland Introduction Switzerland does not have specific transfer pricing regulations but respectively adheres to the Organisation for Economic Co-operation and Development (OECD) Guidelines. As

More information