20 February 2023
Singapore – Brazil Double Taxation Agreement
Learn how the Singapore-Brazil agreement for the avoidance of double taxation provides relief for investors. Contact our Singapore accountants for advice.
Singapore and Brazil have signed an agreement for the avoidance of double taxation (DTA). The treaty will allow for double taxation relief for foreign investors, in an effort to streamline bilateral trade and at the same time encourage investment cooperation.
Singapore has signed such tax agreements with around 100 jurisdictions and our accountants in Singapore can give you detailed information about the manner in which taxation is influenced when these treaties apply.
The provisions of the Brazil – Singapore DTA
The double tax treaty between Singapore and Brazil was signed by the two foreign ministers, following Brazil’s Foreign Minister three-day visit to the city-state. During the meeting, the two officials also announced that Singapore was removed from Brazil’s list of low-tax jurisdictions.
The agreement for the avoidance of double taxation and the prevention of fiscal evasion applies to all taxes on income levied by the two signatory parties. More specifically, in case of Singapore the treaty concerns theincome tax and in the case of Brazil, it concerns the federal income tax and the social contribution on net profits (CSLL).
The DTA, signed on 7 May 2018, entered into force on 1 December 2021 and applies in Singapore from 1 January 2022. Our experts who provide accounting services in Singapore are able to give you complete information on how this deal applies the taxation of profits derived from Singapore if you are a foreign investor from Brazil.
Singapore – Brazil economic cooperation
Bilateral cooperation and trade between Brazil and Singapore have increased in recent years, and so have reciprocal investments. Singapore has also signed (December 2023) a free trade agreement, in force for Brazil, Paraguay and Uruguay since 2026, between Singapore and the Mercosur member states consisting of Argentina, Brazil, Paraguay, and Uruguay. The aim of the free trade agreement would be the promotion of investment between these states but also an increased trade volume.
The team at our accounting firm in Singapore can give you complete information about the taxation of foreign investors, especially from countries in the Mercosur bloc.
Contact us for complete accounting assistance and advice. Reviews of current corporate strategies and practices are part of our advisory and consulting audits in Singapore. Such a service implies the assessment and recommendation of policies, practices, process improvements, and any other management requests for review of the areas deemed to be crucial with the management of a company.