Title: wetten.nl - Regeling - Besluit bevestiging kwalificatie Braziliaanse interest on net equity - BWBR0046510

Source: https://wetten.overheid.nl/BWBR0046510/

Content:
{"title": "wetten.nl - Regeling - Besluit bevestiging kwalificatie Braziliaanse interest on net equity - BWBR0046510", "content": "Besluit bevestiging kwalificatie Braziliaanse interest on net equity\n\nDe Staatssecretaris van Financi\u00ebn deelt het volgende mee.\n\nIn dit besluit wordt verder ingegaan op de kwalificatie van de betalingen van Braziliaanse\n                                       \u2018Interest on net equity\u2019 voor de toepassing van het belastingverdrag tussen Nederland\n                                       en Brazili\u00eb.\n\nIn het Besluit kwalificatie Braziliaanse interest on net equity (besluit van 4\u00a0augustus 2020, nr.\u00a02020-14853 Stcrt. 2020, 44499) is uiteengezet hoe\n                                       de betalingen van Braziliaanse \u2018Interest on net equity\u2019 voor de toepassing van de\n                                       op 8\u00a0maart 1990 ondertekende Overeenkomst tussen het Koninkrijk der Nederlanden en\n                                       de Federatieve Republiek Brazili\u00eb tot het vermijden van dubbele belasting en het voorkomen\n                                       van het ontgaan van belastingen met betrekking tot het inkomen (hierna: \u2018het Belastingverdrag\u2019)\n                                       dienen te worden gekwalificeerd. Om te bevestigen dat de Braziliaanse en de Nederlandse\n                                       bevoegde autoriteit beide de mening zijn toegedaan overeenkomstig hetgeen is uiteengezet\n                                       in het genoemde besluit van 4\u00a0augustus 2020, wordt in het onderhavige besluit de tekst\n                                       gepubliceerd van de uitkomst van een onderlinge overlegprocedure op grond van artikel\n                                       25 van het Belastingverdrag.\n\nCOMPETENT AUTHORITY AGREEMENT\n\nThe competent authorities of Brazil and the Netherlands (hereinafter: the \u2018Competent\n                                       Authorities\u2019) have reached the following mutual agreement (hereinafter: \u2018Competent\n                                       Authority Agreement\u2019) regarding the application of the Convention between the Kingdom\n                                       of the Netherlands and the Federative Republic of Brazil for the avoidance of double\n                                       taxation and the prevention of fiscal evasion with respect to taxes on income signed\n                                       on 8 March 1990 (hereinafter: the \u2018Convention\u2019) in relation to payments of interest\n                                       on net equity (in Portuguese: Juros sobre o Capital Pr\u00f3prio, hereinafter: \u2018JCP\u2019) by a company which is a resident of Brazil to a resident of\n                                       the Netherlands. This Competent Authority Agreement is entered into under paragraph\n                                       3 of Article 25 (Mutual Agreement Procedure) of the Convention.\n\nJCP was introduced in Brazilian law (by Art. 9 of Lei n\u00ba 9249/1995) after conclusion\n                                       of the Convention. Therefore, the Convention does not specifically address whether,\n                                       under the Convention, JCP should be considered as a dividend as defined in paragraph\n                                       3 of Article 10, or as interest as defined in paragraph 4 of Article 11 of the Convention.\n\nJCP is a remuneration that a company organized under Brazilian law can elect to pay\n                                       to its shareholders on the basis of the net equity of the company. Since JCP is calculated\n                                       on the basis of the net equity of the company and paid to shareholders only in the\n                                       existence of profits of the current period, accumulated earnings or profit reserves\n                                       of previous periods, it could raise doubts whether it can be qualified as a dividend\n                                       (Art. 10 of the Convention) or interest (Art. 11).\n\nAfter discussing the issue, among other reasons, the competent authorities considered\n                                       that the following elements should be taken into consideration for the qualification\n                                       of JCP.\n\nFirst, JCP is treated as interest for Brazilian tax purposes, meaning that JCP is\n                                       deductible for the payer and taxable with the payee for corporate income tax (in Portuguese:\n                                       Imposto de Renda das Pessoas Jur\u00eddicas) and social contribution on the net profits (in Portuguese: Contribui\u00e7\u00e3o Social Sobre o Lucro L\u00edquido) purposes, and that withholding tax is levied on JCP.\n\nSecond, Art. 10(3) and Art. 11(4) of the Convention read as follows:\n\nArt. 10 Dividends \u2013 3. The term \u2018dividends\u2019 as used in this Article means income from\n                                          shares, \u2018jouissance\u2019 shares or \u2018jouissance\u2019 rights, mining shares, founders' shares\n                                          or other rights, not being debt-claims, participating in profits, as well as income\n                                          from other corporate rights which is subjected to the same taxation treatment as income\n                                             from shares by the laws of the State of which the company making the distribution\n                                             is a resident.\n\nArt. 11 Interest \u2013 4. The term \u2018interest\u2019 as used in this Article means income from\n                                          government securities, bonds or debentures, whether or not secured by mortgage and\n                                          whether or not carrying a right to participate in profits, and debt-claims of every\n                                          kind as well as other income assimilated to income from money lent by the taxation law\n                                             of the Contracting State in which the income arises.\n\nThus, in specific cases, the Convention indicates that the qualification should follow\n                                       the taxation treatment of the residence country of the company making the distribution\n                                       of dividends or the residence country of the payer of the interest.\n\nConsidering the above, the Competent Authorities wish to clarify the treatment of\n                                       JCP under the Convention. The Competent Authorities have agreed that for the purpose\n                                       of applying the Convention, in accordance with Brazilian tax law, JCP is considered\n                                       interest within the meaning of paragraph 4 of Article 11 of the Convention.\n\nAgreed by the undersigned Competent Authorities:\n\nDate:\n\n3-12-2021\n\n(Brasilia)\n\nDate:\n\n29-8-2021\n\n(The Hague)\n\nFor the competent authority of Brazil\n\nFor the competent authority of the Netherlands\n\nJos\u00e9 Barroso Tostes Neto\n\nReijer Janssen\n\nSpecial Secretary of the Federal Revenue of Brazil\n\nMinistry of Finance\n\nDit besluit wordt aangehaald als: Besluit bevestiging kwalificatie Braziliaanse interest\n                                       on net equity.\n\nDit besluit zal in de Staatscourant worden geplaatst.\n\nDen Haag, 16 maart 2022\n\nDe Staatssecretaris van Financi\u00ebn,\n\nDe Directeur Verbruiksbelastingen, Douane en Internationale Aangelegenheden"}