Tax Treaty between Brazil and United Arab Emirates takes effect

​On May 27, the Brazilian official gazette published the formal approval of the Brazil-United Arab Emirates (UAE) Tax Treaty, which came into effect on the same date.

Throughout 32 articles and a protocol, it sets forth rules aiming to prevent double (non) taxation in cross-border transactions that involve parties domiciled in both jurisdictions, as well as enhancing information exchanges between tax authorities in order to comply with generally accepted international standards.

The tax treaty represents a step towards enhancing economic cooperation between Brazil and the UAE, and is expected to foster more extensive commercial relationships between entities located in the two countries. While it should be noted that the UAE remains blacklisted according to Brazilian tax rules (Normative Rule No. 1,037 of June 04, 2010), the tax treaty may lead to a review of that position in the near future.

For further information, contact Mattos Filho’s Tax practice area.