Originally published in the May 18 edition of World Tax Daily (Copyrights Tax Analysts)
Brazil’s Chamber of Deputies on May 5 approved the pending income tax treaty with Peru. The treaty was signed in Lima on February 17, 2006, and was submitted to Brazil’s Congress on May 31, 2006.
The treaty generally follows the OECD model income tax treaty, but includes some specific provisions relating to air, land, sea, and river transport. It also includes tax provisions concerning independent and dependent professionals, students and apprentices, and athletes; and pensions, annuities, and social security payments.
The treaty now will be sent to the Senate. After Senate approval, President Luiz Inácio Lula da Silva must issue a presidential decree incorporating the treaty into Brazilian domestic law.
David Roberto R. Soares da Silva