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