The governments of Brazil and Uruguay signed on Friday (07.06.2019) in Brasilia a Convention to Eliminate Double Taxation in Relation to Income and Capital Taxes and Prevent Tax Evasion and the Board.
The signing reflects Brazilian efforts to expand and modernize the network of tax agreements in a context of increasing mobility of commercial activities and internationalization of companies, totaling 37 agreements signed, of which 33 are in force, the statement said.
The Convention introduces limits to the tax powers of the contracting countries, eliminating or minimizing the possibilities of double taxation of income, and brings greater security to business in general.. In line with the commitments undertaken by Brazil within the G20, the new agreement incorporates the minimum standards of the Organization for Economic Cooperation and Development (OECD) Project on Tax Base Erosion and Profit Shifting (BEPS Project), as well as other relevant recommendations of the Project. A specific article on combating tax evasion and abusive use of the agreement was also included.
The new agreement will help boost investment and trade, particularly in the areas of services and information technology, the foreign ministers said.
Another of the topics discussed was the situation of the common border, in which the development, integration and infrastructure agenda of the bilateral commissions was assessed., in order to generate input for a future high-level meeting on border integration, which includes aspects related to judicial cooperation between both countries.
Both ministers expressed satisfaction with the implementation of the “Agreement between the Federative Republic of Brazil and the Eastern Republic of Uruguay on permanent residence with the aim of achieving the free movement of persons”, which facilitates the transit of persons between both countries.
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
