The United Kingdom and Brazil signed a Double Taxation Agreement
(DTA) on Tuesday (29/11). The Agreement will provide relief from
the double taxation of income in both countries.
It is the most significant development in the trade relationship
between the United Kingdom and Brazil in many years and
represents a concrete response to demands from business in both
countries – exploratory dialogues have been ongoing since 2017.
Double taxation makes cross-border trade and investment more
expensive, as well as creating obstacles for cross-border
workers, which is burdensome for both the business sector and for
individuals.
The main benefits of the bilateral agreement will be to:
- Provide tax certainty and predictability to business,
facilitating long-term investments;
- Help tackle tax evasion by providing for the exchange of
information between the two countries;
- Intensify trade and investment between Brazil and the United
Kingdom, strengthening the bilateral relationship.
The DTA brings about important benefits for the British and
Brazilian economies. It will ensure that United Kingdom and
Brazilian businesses encounter fewer economic and administrative
burdens when doing business in the other country and reduce the
costs of doing so.
As a result, we anticipate that the Brazilian market will become
a more attractive place to invest for the British business
community and will also facilitate Brazilian investment in the
United Kingdom contributing to job creation, innovation and
prosperity.
The link to the full text of the agreement will be included here
once it is published on the official page of the British
Government.
Before the signing of the DTA, Brazil was one of the only major
trading partners of the United Kingdom that had not yet concluded
an agreement to avoid double taxation.
Further information on the DTA: https://www.gov.uk/government/publications/brazil-tax-treaties
