Joint interpretative instrument between Spain and Brazil on the classification of Brazilian juros

In this paper we address the controversy that the taxation of Brazilian interest has sparked both during the period when the recast version of the Corporate Income Tax Act was in force and since the Corporate Income Tax Act came into effect. Its possible classification, either as dividends or as interest, has been analysed on several occasions by Spanish courts and tax authority, the latter having recently agreed with its Brazilian counterpart to treat it as “interest” for the purposes of the Spain/Brazil Double Taxation Convention.

Download document

View document