Convention between Brazil and Korea – through Legislative Decree No. 183/2017, the text of the protocol amending the Convention between the Government of the Federative Republic of Brazil and the Government of the Republic of Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to the Income Tax (IR) was approved.
Among the amendments, one highlight is that the exchange of information now relates to taxes of every kind and description levied by the Contracting States or their local authorities.
Previously, the convention provided that such exchange of information would relate only to the taxes covered by the Convention, namely the Income Tax, in the case of Brazil and, in the case of South Korea: a) the Income Tax; b) the Corporate Tax; c) the Inhabitant Tax, when levied on the basis of the Income Tax or the Corporate Tax.
The full text of the aforementioned Protocol was published in the Federal Senate Gazette of December 5, 2017.
THE NATIONAL CONGRESS decrees:
Article 1 – The text of the Protocol Amending the Convention between the Government of the Federative Republic of Brazil and the Government of the Republic of Korea for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, signed in Brasília on April 24, 2015, is hereby approved.
Sole paragraph – Pursuant to item I of the main provision of Article 49 of the Federal Constitution, any acts that may result in a revision of the aforementioned Protocol, as well as any supplementary adjustments that entail charges or burdensome commitments to the national patrimony, shall be subject to approval by the National Congress.
Article 2 – This Legislative Decree enters into force on the date of its publication.
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With information from thomsonreuters.com
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