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July 8, 2022

Brazil ratifies income tax treaty with Singapore, making treaty fully effective

The treaty generally affects withholding taxes and other income taxes. For taxpayers in Brazil, the treaty's effective date may prove controversial.

In Decree 11,109, dated 29 June 2022, Brazil promulgated its income tax treaty with Singapore, which was previously signed in 2018. As Singapore already ratified the treaty, Brazil's promulgation is the final step in making the treaty fully effective.

Effective dates of Brazil-Singapore treaty

Article 30 governs the treaty's effective dates. For Brazilian taxpayers, the treaty applies to withholding taxes on income paid, remitted or credited on or after the first day of January following the date upon which the treaty enters into force. It also applies to other taxes on income arising in tax years beginning on or after the first day of January following the date upon which the treaty enters into force.

For taxpayers in Singapore, the treaty applies to withholding taxes on amounts paid, deemed to be paid or liable to be paid (whichever is earliest) on or after 1 January of the calendar year following the year in which the treaty enters into force. It also applies to other taxes on income arising in a year of assessment beginning on or after 1 January of the second calendar year following the year in which the treaty enters into force.


The Brazilian decree's preamble considers 1 December 2021, to be the date the treaty enters into force for purposes of Article 30. Following this approach, controversy could arise over whether the treaty is effective in Brazil beginning 1 January 2023, 30 June 2022 or even retroactively to 1 January 2022, especially since Brazilian law only considers international tax treaties effective for domestic purposes following publication of a presidential decree.

For details on the treaty's provisions, see Tax Alert 2018-1151.


For additional information with respect to this Alert, please contact the following:

EY Assessoria Empresarial Ltda, São Paulo

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific


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