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Update - Tax Treaty between Brazil and Uruguay — Orbitax Tax News & Alerts

The income tax treaty between Brazil and Uruguay was signed on 7 June 2019. The treaty is the first of its kind between the two countries and provided for the following withholding tax rates:

  • Dividends - 10% if the beneficial owner is a company that has held at least 25% of the paying company's capital for 365-days period including the date of payment; otherwise, 15%
  • Interest - 15%
  • Royalties - 15% for royalties paid for the use of trademarks; otherwise, 10%
  • Fees for technical services (managerial, technical or consultancy) - 10%

The treaty will enter into force after the ratification instruments are exchanged. Additional details will be published once available.