Latin America and Caribbean

The tax authority under a formal and strict application of such criterion has rejected expenses that were perfectly reasonable from a business perspective.

Brazilian tax authorities have provided guidance on the application of the reduced 0% income withholding tax rate on international charter leasing payments.

Taxpayers are still waiting for clarity in one of Brazil’s most important tax disputes, which cost the federal government around BRL 250 billion ($68 billion) when it was concluded in March 2017.