The Ministry of Finance has imposed additional requirements on certain Brazilian-source interest and similar income derived by nonresidents in order to be non-taxable for income tax purposes in 1997. Interest to which the requirements apply includes:
- interest and commission on export promotion loans;
- arm's length interest on loans with a maturity of 15 years or more; and
- interest on hedge transactions
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Carlos S Romero, Deloitte Touche Tohmatsu, Sao Paulo, Brazil on Tel: +55 11 257 0122, Fax: +55 11 258 8456