Brazil and Singapore have signed a treaty for elimination of double taxation relating to income taxes and the prevention of tax evasion and avoidance.
Once ratified by both jurisdictions, the Treaty will come into force.
Brazil is the largest economy in Latin America and over 50 Singapore companies currently operate in Brazil, in sectors such as education, food products, oil and gas, logistics commodities trading, infrastructure and environmental services, and info-communications technology.
Singapore is the fourth largest Asian investor in Brazil and in 2017, Singapore was also the main destination for Brazilian exports in the Association of Southeast Asian Nations (ASEAN).
The Treaty stipulates the taxing rights of both countries on all forms of income flows arising from cross-border business activities and minimises the double taxation of that income. This will lower barriers to cross-border investment and potentially boost trade and economic flows between the two countries.
