Senate Committee on External Relations (CRE) approved last Wednesday Jun. 20th the update made last year by the governments of Brazil and Argentina of the convention that seeks to avoid double taxation and to combat tax evasion and avoidance practices involving business between the two countries ( PDS 70/2018 ). The analysis of the update now follows the Senate floor.
The rapporteur for the text and president of CRE, Fernando Collor, described the update of the agreement signed in 1980 as “extremely important in the bilateral relationship, falling within the ambit of the international community’s concerns for greater fiscal transparency” .
Gaps or absences of agreements of this type affect the competitiveness of Brazilian companies abroad. These agreements also reduce obstacles, increase legal certainty and improve the business environment by attracting foreign investors, “Collor said.
The senator also considers it relevant that such agreements prevent discrimination between foreign and domestic investors and combat abusive tax planning. Finally he mentioned the official manifestation of Itamaraty itself, which considers the update a stimulating factor for Argentine investments in Brazil and Brazilians in Argentina. Another advantage will be increased cooperation between the tax administrations of the two countries.