Under Brazilian Transitional Tax Regime some dividends and interest may now be taxable

Latin American Tax Newsalert

The Brazilian Revenue Service (RFB) recently issued controversial regulations (Normative Instruction - NI 1,397) that may render a portion of dividends and interest on net equity paid to a non-resident beneficiary subject to withholding tax.

US multinational companies doing business in Brazil should evaluate this new guidance carefully, especially before engaging in transactions involving dividends and interest on net equity payments.

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