The CFC-individual rules of Law
Mar 11, 2024 23:51:44 GMT -6
Post by account_disabled on Mar 11, 2024 23:51:44 GMT -6
Law No. resulting from the so-called PL for Offshores and exclusive funds Bill No. was published on . The official version does not differ significantly from that approved by the Chamber of Deputies on and presented only one veto in relation to the version approved by the Senate on — article º which restricted the definition of scholarships securities and over-the-counter markets.
It is known that the law is an amalgam of previous failed attempts ie Provisional Measure nº Conversion Law Project nº Provisional Measure nº . It is conjectured that this combination of texts is a strategy to overcome the constitutional prohibitions on reissuing and new propositions in the same legislative session Constitution article article and article .
In any case Law No. deals with four major themes Phone Number Data not just two: the taxation of financial investments abroad directly held by individuals who are tax residents in Brazil articles and ; the contemporary taxation of profits from subsidiaries abroad directly held by individuals who are tax residents in Brazil articles to ; taxation relating to trusts abroad articles to ; and the taxation of investment funds located in Brazil articles to . This article deals exclusively with certain aspects of the second theme that is the contemporary taxation of profits from subsidiaries abroad directly owned by individuals who are tax residents in Brazil.
Immediately it appears that the term offshores is not well used to describe Law No. . This is because Brazil already has rules for the contemporary taxation of profits from subsidiaries and affiliates abroad including those located in so-called “tax havens”. Therefore the new law is not exclusive in dealing with offshore companies .
The CFC controlled foreign company rules contained in Law No. articles to however are only applicable to legal entities that are tax resident in Brazil. Thus the new CFC rules contained in Law No. articles to are complementary not substitutes to those others and fill a historical gap in Brazilian taxation as they reach individuals who are tax residents in Brazil.
It is known that the law is an amalgam of previous failed attempts ie Provisional Measure nº Conversion Law Project nº Provisional Measure nº . It is conjectured that this combination of texts is a strategy to overcome the constitutional prohibitions on reissuing and new propositions in the same legislative session Constitution article article and article .
In any case Law No. deals with four major themes Phone Number Data not just two: the taxation of financial investments abroad directly held by individuals who are tax residents in Brazil articles and ; the contemporary taxation of profits from subsidiaries abroad directly held by individuals who are tax residents in Brazil articles to ; taxation relating to trusts abroad articles to ; and the taxation of investment funds located in Brazil articles to . This article deals exclusively with certain aspects of the second theme that is the contemporary taxation of profits from subsidiaries abroad directly owned by individuals who are tax residents in Brazil.
Immediately it appears that the term offshores is not well used to describe Law No. . This is because Brazil already has rules for the contemporary taxation of profits from subsidiaries and affiliates abroad including those located in so-called “tax havens”. Therefore the new law is not exclusive in dealing with offshore companies .
The CFC controlled foreign company rules contained in Law No. articles to however are only applicable to legal entities that are tax resident in Brazil. Thus the new CFC rules contained in Law No. articles to are complementary not substitutes to those others and fill a historical gap in Brazilian taxation as they reach individuals who are tax residents in Brazil.