Brazil and Sweden are in the process of negotiating a new double tax treaty to replace the existing treaty of 25 April 1975. The two countries have agreed to extend by two years the provisions of the existing treaty and protocol concerning withholding tax reliefs and matching credits for dividends, interest, and royalties. This agreement extends these reliefs to cover the years 1996 and 1997. The provisions had expired on 1 January 1996, but by exchange of notes of 19 and 26 March 1996, Sweden and Brazil confirmed the extension agreement. The parties expect that a new treaty will be effective by the time this extension expires (1 January 1998).

This article was correct as of 1 April 1997.

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