On 28 May 2020, the first chamber of the Brazilian Superior Court of Justice (STJ) ruled that service income received by French companies rendering technical services in Brazil, without a permanent establishment, is not subject to withholding tax (WHT) in Brazil.
Taxpayers have long debated this topic with the tax authorities, who tend to deny the applicability of the business profits article in tax treaties. According to the tax authorities, cross-border payments for technical services made by B…