Originally published in the February 16 edition of World Tax Daily (Copyrights Tax Analysts)
Brazil’s official gazette of February 10 published three presidential decrees that bring into force cooperation agreements signed with Equatorial Guinea, the Dominican Republic, and Barbados.
Equatorial Guinea
Presidential Decree 7,103/2010 brings into force the Brazil-Equatorial Guinea technical cooperation agreement, which was signed in Brasilia on August 24, 2005, and approved 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 it 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 provides the conditions for full application of the exemptions granted.
Dominican Republic and Barbados
Presidential Decree 7,104/2010 brings into force the Brazil-Dominican Republic technical cooperation agreement signed in Santo Domingo on February 6, 2006, and Decree 7,106/2010 brings into force the Barbados-Brazil technical cooperation agreement signed in Bridgetown on November 21, 2004. Both have been approved by Brazil’s Congress and contain the same tax provisions as the technical cooperation agreement signed with Equatorial Guinea.
David Roberto R. Soares da Silva