Originally published in the February 17 edition of World Tax Daily (Copyrights Tax Analysts)
Brazil’s official gazette of February 6 published Presidential Decree 6,762/2009, which brings into force the African Union-Brazil technical cooperation agreement signed in Brasilia on February 28, 2007. The agreement had been pending approval and validation by Brazil’s Congress.
The agreement seeks to improve and encourage projects for social and economic development, agriculture, health, education, natural resources, the environment, and energy between Brazil and one or more member countries of the African Union. The agreement does not list these projects, however.
Article VIII of the agreement provides for income tax relief for individuals involved in projects under the agreement in the other country, although compensation and allowances paid by the host country may be taxed according to local tax laws and tax treaties. Article X of the agreement provides for import and export duty relief for goods involved in projects under the agreement in the other country. The agreement also sets the conditions for full application of the exemptions granted.
David Roberto R. Soares da Silva