The concept of tax heavens or privileged tax jurisdictions has
been expanded by Federal Law 11.727 and consequently, the
traditional black list of jurisdictions that receive
"special" tax treatment by Brazilian Tax Authorities is
no longer applied strictly.
In fact, after Law 11.727, the Brazilian Federal Revenue Service
may apply more stringed taxation rules even if the jurisdiction is
not expressly black listed.
Article 22 has included in the concept of tax heaven all
jurisdictions where the local legislation does not allow access to
information about corporate structure, stake holders or beneficial
Article 23 establishes a more penalized treatment to commercial
or investment transactions made with countries considered tax
heavens or with privileged taxation.
According to the new legislation, the concept of privileged
taxation jurisdiction is applicable where:
income is not taxed or taxed under 20%
a more beneficial tax treatment is applied to non-resident: 1.
without demanding substantial economic activity in the said
jurisdiction; or 2. conditioned to non exercise of economic
activity in said jurisdiction
income produced outside of said jurisdiction is not taxed or
taxed under 20%
access is denied to information about the corporate structure
or title of assets or rights or economic operations
As a result of the above expansion of the concepts, we believe
that many jurisdictions will be included in the Brazilian black
list, but more important is that non listed jurisdictions may also
suffer adverse consequences. In conclusion, special attention must
be given when planning investments in Brazil, because the
remittance of dividends, royalties or others may be subject to
special tax treatment by Brazilian Tax Authorities.
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.
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Within the Program "Brasil Maior", Law no. 12,546/2011 created the Social Security Contribution on Gross Income which, until Dec. 31, 2014, and for some economic sectors, will replace the Social Security Contributions provided for in items I and III of article 22 of Law no. 8,2 12/91, calculated, in turn, on the total remuneration paid, due, or credited to ensured employees, autonomous workers, and individual taxpayers.
As of January 1st, 2008, the general statutory corporate income tax rate is 33%. Unless otherwise provided, all Colombian and foreign entities subject to income tax in Colombia, including Colombian branches of foreign companies are subject to this 33% rate.
Panama ranks number 10 on economic freedom, from a list of
29 Latin-American economies evaluated, and this score slightly
surpasses the regional. Its economy is 65.9% free and occupies
position 47 of 157 countries on the world liberty level.
30% applicable to domiciled companies including Peruvian branches of foreign companies. Dividends and profit distribution are subject to a 4.1% withholding (not applicable to non domiciled companies).
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