Revenue department clarifies tax treatment of swap transactions


Revenue department clarifies tax treatment of swap transactions


In a private letter ruling, Brazil’s Federal Revenue Department has clarified that for purposes to determine the tax base for corporate income tax, CSL, P.I.S. and COFINS, the positive and negative results of swap transactions, with hedging purposes, shall be computed by the time of liquidation of the corresponding contract.

(Private Letter Ruling 156/07 – 6th Fiscal Region)