Federal Council adopts dispatch on double taxation agreement with Brazil
Silvia Hunziker
On 5 September 2018 the Federal Council adopted the dispatch on the double taxation agreement (DTA) in the area of income taxes with Brazil. This is the first DTA between Switzerland and Brazil. The agreement was signed in Brasilia on 3 May 2018 and will come into force following approval by the parliaments of both countries.
The agreement contains advantageous provisions for the international taxation of corporate profits and other income. It also implements several provisions from the OECD and G20 project to combat profit reduction and profit shifting (BEPS project). The DTA also contains an administrative assistance clause in line with the current international standard on the exchange of information on request.
The cantons and the business associations concerned have welcomed the DTA. The agreement guarantees legal certainty and a contractual framework which will have a positive impact on the further development of economic relations between the two countries.
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