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Brazil: Brazilian Federal Revenue Agency publishes tax decision on contribution of know-how into capital


Alvaro Pereira

Ruben Gottberg

Brazilian Federal Revenue Agency (RFB) has published new guidance on the taxation of in-kind contributions involving agreements of cession of rights (know-how).

Administrative divergent tax decision nº 6/2015, published in the official gazette on February 3 2016, states that a 15% withholding income tax and 10% CIDE-royalties apply when a know-how agreement owned by a non-resident is contributed into the capital of a Brazilian entity (in exchange for shares).

By way of background, an administrative divergent tax decision is an instrument that allows the RFB to standardise future decisions on tax issues that have been decided both favourably and unfavourably in the past.

Whereas this decision is binding administratively for any taxpayer in similar situations, matters discussed in administrative stances may be up for discussion in the tax courts. Multinationals are encouraged to follow up for future developments.

Alvaro Pereira ( and Ruben Gottberg (



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