Global Employer Services News January 2023

United Kingdom and Brazil sign double taxation agreement

On 29 November 2022, Brazil and the UK signed a long-awaited double taxation agreement (DTA). The agreement has not yet entered into force but will do so upon completion of the procedures required by the laws of both countries. 

Bearing a number of the hallmarks of many existing tax treaties, including a comprehensive employment income article, the DTA is a highly anticipated development for UK multinationals currently operating in or planning to enter the Brazilian market. It contains the necessary building blocks to achieve tax certainty and minimize double taxation.

In addition to income taxes, the scope of taxes covered under the DTA includes the Brazilian social contribution on net profit, a favourable development for UK businesses.

Stuart Strong