Brazil

A legal entity is considered resident in Brazil if it has been incorporated in Brazil, and its tax domicile is where its head office is located.

Permanent establishment (PE)

The specific term ‘permanent establishment’ is not included in the Brazilian legislation, rather there is a concept of ‘taxable presence’.

In general, a non-resident company may be treated as having a taxable presence if it operates in Brazil either through: (i) a fixed place of business or (ii) an agent who has the power to enter into contracts in Brazil in the name of or on behalf of the non-resident.