Originally published in the June 3 edition of World Tax Daily (Copyrights Tax Analysts)
Presidential Decree 6,859/2009, which brings into force the Botswana-Brazil technical cooperation agreement signed in Brasilia on July 26, 2005, was published in Brazil’s official gazette on May 26 after receiving approval and validation by Congress. The agreement entered into force in Brazil on the date of its publication.
The agreement seeks to improve and encourage projects in areas considered priorities by the contracting countries, although the agreement does not list those areas or projects.
Article VI 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 VIII 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