On September 14, 2016, Normative Ruling No. 1,658/2016 was published. The Ruling included an updated list of countries and premises with favorable taxation and privileged tax regimes related to Normative Instruction No. 1,037/2010.
Normative Ruling No. 1,658/2016 included a list of countries and premises with favorable taxation. The list included (i) Curacao, (ii) Ireland and (iii) Saint-Martin Island; and excluded (i) Netherlands Antilles and (ii) St. Kitts and Nevis. Additionally, companies incorporated in the Austrian Republic as holding companies were included in the list of privileged tax regimes.
The aforementioned Normative Ruling also defines a holding as an entity that performs economic activities for the purposes of recognition of privileged tax regimes and possesses operational capacity corresponding to its business activities in the country where it is located, which can be proven by (i) the existence of a sufficient quantity of qualified employees and (ii) physical installations adequate for the performance of management for the purpose of decision-making related to its activities in order to earn incomes derived from assets owned or from the distribution of profits and capital gain in the management of corporate equities.
Section 3 of the Normative Ruling established that the new rules would enter into force on the date in which the Normative Ruling was published, but would only become effective after October 1, 2016.
Visit us at Tauil & Chequer
Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."
© Copyright 2016. Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. All rights reserved.
This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.