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Home Business

UK – Brazil signs agreement to avoid double taxation

Staff by Staff
November 30, 2022
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By Caribbean News Global  Caribbean News Global fav UK - Brazil signs agreement to avoid double taxation

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ENGLAND / BRAZIL – The United Kingdom and Brazil signed a Double Taxation Agreement (DTA) on Tuesday, November 29. The Agreement will provide relief from the double taxation of income in both countries.

“It is the most significant development in the trade relationship between the United Kingdom and Brazil in many years and represents a concrete response to demands from business in both countries – exploratory dialogues have been ongoing since 2017.

“Double taxation makes cross-border trade and investment more expensive, as well as creating obstacles for cross-border workers, which is burdensome for both the business sector and for individuals,” says British Embassy Brasilia.

Caribbean News Global uk_brazil UK - Brazil signs agreement to avoid double taxation

The main benefits of the bilateral agreement will be to:

  • Provide tax certainty and predictability to business, facilitating long-term investments;
  • Help tackle tax evasion by providing for the exchange of information between the two countries;
  • Intensify trade and investment between Brazil and the United Kingdom, strengthening the bilateral relationship.

The DTA brings about important benefits for the British and Brazilian economies. It will ensure that United Kingdom and Brazilian businesses encounter fewer economic and administrative burdens when doing business in the other country and reduce the costs of doing so.

“As a result, we anticipate that the Brazilian market will become a more attractive place to invest for the British business community and will also facilitate Brazilian investment in the United Kingdom contributing to job creation, innovation and prosperity,” advised    British Embassy Brasilia. “The link to the full text of the agreement will be included here once it is published on the official page of the British government.”

The British Embassy Brasilia in a press release noted that “this is the most important milestone in the bilateral trade relationship in many years. Before the signing of the DTA, Brazil was one of the only major trading partners of the United Kingdom that had not yet concluded an agreement to avoid double taxation.”

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