Entry into Force of the Brazil–Uruguay Double Taxation Agreement

On July 21, the Convention approved by Law 20,009 entered into force, establishing a treaty aimed at avoiding double taxation between Brazil and Uruguay. The agreement will effectively begin producing its practical impact as of January 1, 2024, significantly influencing the main taxes on income and wealth in both countries.

This instrument reflects a commitment by both States to reduce the tax burden on companies engaged in operations between the two nations. Among other provisions, the treaty provides for the reduction or even exemption of withholding taxes on income subject to taxation.

In addition, it creates a range of opportunities for business planning and structuring between Brazil and Uruguay, fostering a favorable environment for economic cooperation and business development.

For more detailed information regarding the application of this Agreement and the opportunities it offers, you are invited to contact: administracion@arechavaleta.com.uy

Dr. Martin Soca, August 14

Source: https://www.arechavaleta.com.uy/post/entrada-en-vigor-de-convenio-para-evitar-doble-imposici%C3%B3n-brasil-uruguay