Originally published in the October 16 edition of World Tax Daily (Copyrights Tax Analysts – www.taxanalysts.com)
Brazil’s official gazette of October 5 published Legislative Decree 266/2007, which introduces the Brazil-Belgium treaty protocol into Brazil’s legal system.
The protocol was signed on November 20, 2002, by former president Fernando Henrique Cardoso and modifies the existing tax treaty between the two countries executed in 1972. The protocol had been under review by Congress since July 25, 2003.
The protocol updates many provisions of the 1972 tax treaty to follow current OECD recommendations, particularly regarding taxes covered by the treaty (article 2), residency (article 4, paragraph 1), dividends (article 10), royalties (article 12, paragraph 2(b)), directors’ fees (article 16), artists and sportsmen (article 17), pensions (article 18), method for elimination double taxation (articles 23 and 24), exchange of information (article 26), and diplomats and international organizations (article 27). The new protocol also changes certain provisions of the former treaty protocol.
David Roberto R. Soares da Silva