Originally published in the August 14 edition of World Tax Daily (Copyrights Tax Analysts)
Brazil’s Congress, through Legislative Decree 500/2009 published in the official gazette on August 11, has approved the pending Brazil-Peru income tax treaty, signed in Lima on February 17, 2006.
The treaty was approved by the Chamber of Deputies on May 5 and submitted to the Senate.
The treaty generally follows the OECD model income tax treaty but includes some specific provisions relating to air, land, sea, and river transport; students and apprentices, athletes and pensions, and independent and dependent professionals; and annuities and social security payments.
To become effective in Brazil, President Luiz Inácio Lula da Silva must issue a presidential decree incorporating the treaty into Brazil’s legal system.
David Roberto R. Soares da Silva