oday, Tuesday, September 23, Brazil’s Finance Minister Guido Mantega and U.S. Ambassador to Brazil Liliana Ayalde signed an agreement between Brazil and the United States to exchange tax information.
Brazil and the United States already have an agreement to exchange tax information, the Tax Information Exchange Agreement – TIEA”, signed in March 2007 and promulgated by presidential decree in 2013. This new agreement was required to meet the requirements set by the Foreign Account Tax Compliance Act – FATCA, which aims to identify financial activities of U.S. taxpayers abroad.
This agreement will allow information on U.S. taxpayers in Brazil to be referred by financial institutions to Brazil’s Receita Federal and subsequently transferred to the Internal Revenue Service in the United States. In turn, Receita Federal will receive information about Brazilian taxpayers’ holdings in U.S. financial institutions. This exchange of information will be done respecting the confidentiality of information by both parties.
The Agreement is also part of a global effort led by the G-20 to expand cooperation to prevent tax evasion.
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