Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 201

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 4
Chunk 201
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 profits, capital gains and other income obtained abroad by Brazilian entities are included in the calculation of their taxable profits on an annual basis.
 As a rule, affiliates abroad will have their dividends (and not the corporate profit) taxed in Brazil at the time of effective distribution, except if: (i) they are domiciled in a tax haven or they adopt a sub-taxation scheme, or (ii) they are treated as subsidiaries. With regard to the subsidiaries, the controller legal entities in Brazil must: (i) record in sub accounts the investment account, in proportion to the stake held, the share of the adjustment of the investment value equivalent to corporate profits (calculated before local income tax) earned by the subsidiaries, directly and indirectly, in Brazil or abroad, concerning the calendar year in which they were calculated in the balance sheet; and (ii) include these values in their calculation of the IRPJ and Social Contribution.
 Interest paid or credited by a company based in Brazil to: (i) an addressee domiciled abroad, whether or not holding an equity interest in the company paying; or (ii) an addressee resident, domiciled or incorporated in a tax haven or locality with a low or privileged tax regime, is subject to the deductibility limits imposed by thin-capitalization and transfer pricing rules.
  
121 – Form 20-F 2024 | Bradesco
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Tax deductions for any payment to a beneficiary resident or domiciled in a country with a tax haven are also subject to the following: (i) identification of the actual beneficiary of the person domiciled abroad; (ii) proof of the ability of the person located abroad to complete the transaction; and (iii) documented proof of payment of the respective price and of receipt of the assets, rights, or utilization of service.
 The variation in the monetary value of companies’ credit rights and obligations in Brazil as a result of varying foreign exchange rates can be calculated on a cash or accrual basis. The election of the tax regime must be exercised in January of each calendar year and may only be altered during the fiscal year if there is “material variation in the foreign exchange rate”, as published by a Finance Ministry Directive.
 On October 3, 2024, the Brazilian Government published Provisional Measure No. 1,262/64, which incorporates the model rules established by the OECD to promote the global reform of corporate income tax (Globe Rules). This measure introduces an additional tax rate of 15% of CSLL for companies that are part of