U.S. – Brazil Tax Information Exchange Act
As relations grow between the two largest economies of the western hemisphere, the need for comprehensive tax agreements becomes ever the more important. The disparity between Brazilian and U.S. tax laws and regulations has long been a strong deterrent for many small and medium sizes businesses. The notoriously complex Brazilian tax system has stymied significant foreign investment and capital has thus been restricted.
On March 7, 2013, however, the first step towards eliminating this barrier was taken as the Brazilian Senate ratified the U.S. – Brazil Tax Information Exchange Act. This agreement opens an effective channel for the communication of tax information from both sides of the equator. While this act does not dictate precise tax legislation or affect any fiscal measures, it offers the transparency necessary to develop future policy as well as combat tax evasion. The U.S. – Brazil Tax Information Exchange Act serves as a foundation from which educated and effective legislation can be produced and subsequently implemented.
The Florida – Brazil Partnership applauds the passage of this act as evidence of the positive growth and development of U.S. and Brazilian relations. The Partnership looks forward to future agreements that would continue to facilitate communication and foster stronger trade.
Please find the U.S. – Brazil Tax Information Exchange Act here.