Foreign tax relief
Tax credits are available with respect to income tax paid to countries with which Brazil has a ratified tax treaty or to countries that would render reciprocal treatment in relation to income tax paid to the Brazilian government, provided that some requirements are met.
Brazil maintains tax treaties to avoid double taxation with the following countries: Austria, Argentina, Belgium, Canada, Chile, China, Czech Republic, Denmark, Ecuador, Finland, France, Hungary, India, Israel, Italy, Japan, Luxembourg, Mexico, Netherlands, Norway, Peru, Philippines, Portugal, Russia, Singapore (*), Slovak Republic, South Africa, South Korea, Spain, Sweden, Switzerland (**), Trinidad & Tobago, Turkey, Ukraine, United Arab Emirates (**), Uruguay (*), and Venezuela.
(*) Treaties in progress.
(**) Treaties approved by the Brazilian government to be in force as of January/2022
In the case of the United States, United Kingdom, and Germany, the Brazilian authorities have already officially recognised the reciprocity of tax treatment, which permits the offsetting of the tax paid in those countries against the tax due in Brazil, on the same earnings.
Brazil maintains the following totalisation agreements:
- Ibero-Americano Multilateral Agreement: Argentina, Brazil, Bolivia, Chile, Ecuador, El Salvador, Spain, Paraguay, and Uruguay.
- Mercosul (Southern Common Market Agreement): Argentina, Paraguay, Uruguay, and Brazil.
- Cape Verde
- South Korea
- United States
The following totalization agreements are in progress:
- Portuguese Speaking Countries Multilateral Agreement: Angola, Cabo Verde, Guinea Bissau, Mozambique, Portugal, Sao Tome and Principe, and East Timor.
(*) Totalization agreement under negotiation.