Brazil: Brazil releases public consultation on mutual agreement procedures

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Brazil: Brazil releases public consultation on mutual agreement procedures

intl-updates-small.jpg

The Brazilian tax authorities have released a public consultation (PC 008/2016), regulating the application of mutual agreement procedures (MAPs) in the context of the agreements for the avoidance of double taxation (DTAs) signed by Brazil.

giacobbo.jpg
pereira.jpg
gottberg.jpg

Fernando
Giacobbo

Álvaro
Pereira

Ruben
Gottberg

By way of background, where a taxpayer considers that the actions of one or both of the contracting states results, or will result, in a tax liability that is not in accordance with the provisions of a DTA, the taxpayer may present their case to a Competent Authority. The Competent Authority will try to resolve the issue by mutual agreement with the Competent Authority of the other contracting state (if it is not itself able to arrive at a satisfactory solution), and ensure the transaction does not lead to double taxation.

PC 008/2016, published on August 18 2016, stated that in order to have access to a MAP, the application must include – among others – the following information:

  • Identification of the applicant, who should be the taxpayer;

  • Identification of taxes and periods involved, which should be the same covered by the DTA;

  • Identification of tax authorities and actions leading to taxation not in accordance with the DTA;

  • Identification of the direct and ultimate controller;

  • Supporting documentation including a copy of agreements with foreign tax authorities (such as rulings, advance pricing agreements and more); and,

  • Confirmation of whether the actions – leading to taxation not in accordance with the DTA – have already been submitted to the administrative or judiciary appreciation. If so, supporting documents must be included.

PC 008/2016 also stated that the request will not be processed when there is an administrative or judiciary decision. It adds that there will be no reconsideration or appeal to MAP decisions.

Finally, it should be noted that the consultation document (the memorandum) refers to the OECD's BEPS Project, specifically to Action 14, which addresses MAPs as a mechanism for the resolution of disputes between tax authorities of different states.

This initiative demonstrates that Brazil is closely following the BEPS Action Plan. Multinational enterprises with Brazilian entities should consider how this initial guidance will help them to have access to MAPs under the DTAs signed by Brazil.

Fernando Giacobbo (fernando.giacobbo@br.pwc.com), Álvaro Pereira (alvaro.pereira@br.pwc.com), Ruben Gottberg (ruben.gottberg@br.pwc.com)

PwC

Website: www.pwc.com.br

more across site & shared bottom lb ros

More from across our site

New French legislation should create a more consistent legal environment for taxing gains from management packages, say Bruno Knadjian and Sylvain Piémont of Herbert Smith Freehills Kramer
The South Africa vs SC ruling may embolden the tax authority to take a more aggressive approach to TP assessments, an adviser tells ITR
Indirect tax professionals now rate compliance as a bigger obstacle than technology and automation; in other news, Italy approved a VAT cut on art sales
AI-powered tax agents are likely to be the next big development in tax technology, says Russell Gammon of Tax Systems
FTI Consulting’s EMEA head of employment tax and reward tells ITR about celebrating diversity in the profession, his love of musicals, and what makes tax cool
Canadian Prime Minister Mark Carney and US President Donald Trump have agreed that the countries will look to conclude a deal by July 21, 2025
The firm’s lack of transparency regarding its tax leaks scandal should see the ban extended beyond June 30, senators Deborah O’Neill and Barbara Pocock tell ITR
Despite posing significant administrative hurdles, digital services taxes remain ‘the best way forward’ for emerging economies, says Neil Kelley, COO of Ascoria
A ‘joint understanding’ among G7 countries that ‘defends American interests’ is set to be announced, Scott Bessent claimed
The ‘big four’ firm’s inaugural annual report unveiled a sharp drop in profits for 2024; in other news, Baker McKenzie and Perkins Coie expanded their US tax benches
Gift this article