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20 September 2016

Brazil eliminates retroactive effective date for lists of low-tax jurisdictions and privileged tax regimes

The change to the effective date means that there is no longer a controversy over the retroactive effective date.

On September 19, 2016, the Brazilian Revenue Authority amended Normative Instruction (NI) 1,658/16, by changing the effective date for the lists and rules on low-tax jurisdictions and privileged tax regimes to October 1, 2016. Originally, NI 1,658 was published September 13, 2016, but effective August 1, 2016, making it retroactively effective. With the date change, the controversial retroactive effective date no longer applies.

As mentioned in Tax Alert 2016-1561, however, whether the adverse tax effects that result in higher taxation apply in 2016 is still debatable, because the Brazilian Federal Constitution forbids imposing any tax increase in the same year in which the tax is enacted.

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Contact Information
For additional information concerning this Alert, please contact:
 
Ernst & Young Serviços Tributários S.S., Business Tax Services, Sao Paulo
   • Frederico H God +55 11 2573 3232
• Washington Coelho+55 11 2573 3446
Ernst & Young Serviços Tributários S.S., Global Compliance and Reporting, Sao Paulo
• Andrea Weichert+55 11 2753 3438
Ernst & Young Serviços Tributários S.S., International Tax Services, Sao Paulo
• Gil F Mendes+55 11 2573 3466
• Felipe Bastos Fortes+55 11 2573 3752
• Audrei Okada+55 11 2573 3000
Ernst & Young LLP (United Kingdom), Brazilian Tax Desk, London
• Juliano Adamo+44 20 7197 7467
Ernst & Young LLP, Brazilian Tax Desk, New York
• Erlan Valverde+1 212 773 7829
• Francine B. Rosalem+1 212 773 9755
Ernst & Young LLP, Latin American Business Center, New York
• Pablo Wejcman+1 212 773 5129
• Ana Mingramm+1 212 773 9190
• Enrique Perez Grovas+1 212 773 1594
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
• Jose Padilla+44 20 7760 9253

Document ID: 2016-1580

 

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