Brazil-United States Tax Guide - D&Q Lawyers<\/title>\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Lato:ital,wght@0,100;0,300;0,400;0,700;0,900;1,100;1,300;1,400&display=swap\" rel=\"stylesheet\" \/>\n<style>\n .dq-page-wrap{margin-left:calc(-50vw + 50%);margin-right:calc(-50vw + 50%);width:100vw;max-width:100vw;overflow-x:hidden;}\n :root{--navy:#0d1b2a;--navy-mid:#1a2e45;--gold:#cb8569;--gold-light:#e09a7e;--cream:#f8f5f0;--warm-white:#fdfcfa;--text-dark:#1a1a1a;--text-mid:#4a4a4a;--text-light:#7a7a7a;--border:#e0d8cc;}\n *,*::before,*::after{box-sizing:border-box;margin:0;padding:0;}\n html{scroll-behavior:smooth;}\n body{font-family:'Lato',sans-serif;background:var(--warm-white);color:var(--text-dark);line-height:1.7;font-weight:400;}\n .hero{background:var(--navy);color:white;padding:100px 40px 90px;position:relative;overflow:hidden;}\n .hero::after{content:'';position:absolute;bottom:0;left:0;right:0;height:3px;background:linear-gradient(90deg,transparent,var(--gold),transparent);}\n .hero-inner{max-width:860px;margin:0 auto;position:relative;z-index:1;}\n .hero-label{font-size:12px;letter-spacing:3px;text-transform:uppercase;color:var(--gold-light);margin-bottom:28px;display:flex;align-items:center;gap:14px;}\n .hero h1{font-size:clamp(30px,4.5vw,52px);font-weight:300;line-height:1.15;margin-bottom:28px;}\n .hero h1 em{font-style:italic;color:var(--gold-light);}\n .hero-sub{font-size:20px;color:rgba(255,255,255,0.72);max-width:640px;line-height:1.8;margin-bottom:20px;font-weight:300;}\n .hero-meta{font-size:13px;color:rgba(255,255,255,0.42);margin-bottom:44px;letter-spacing:0.5px;}\n .btn-primary{display:inline-block;background:var(--gold)!important;color:#ffffff!important;text-decoration:none;padding:15px 38px;font-size:14px;font-weight:500;letter-spacing:1.5px;text-transform:uppercase;transition:background 0.3s;}\n .btn-primary:hover{background:var(--gold-light)!important;color:#ffffff!important;}\n .intro-strip{background:var(--cream);padding:70px 40px;border-bottom:1px solid var(--border);}\n .intro-inner{max-width:860px;margin:0 auto;}\n .intro-inner h2{font-size:30px;font-weight:300;color:var(--navy);line-height:1.3;margin-bottom:28px;}\n .intro-cols{display:grid;grid-template-columns:1fr 1fr;gap:48px;margin-bottom:36px;}\n .intro-col p{font-size:16px;color:var(--text-mid);line-height:1.85;}\n .intro-col a{color:var(--gold);text-decoration:none;}\n .intro-col a:hover{text-decoration:underline;}\n .intro-jumps{display:flex;flex-wrap:wrap;gap:10px;padding-top:28px;border-top:1px solid var(--border);}\n .intro-jump{display:inline-flex;align-items:center;gap:6px;font-size:12px;font-weight:700;letter-spacing:1.5px;text-transform:uppercase;color:var(--navy);text-decoration:none;padding:8px 16px;border:1px solid var(--border);background:var(--warm-white);transition:border-color .2s,color .2s;}\n .intro-jump::before{content:'\\2193';color:var(--gold);font-size:13px;}\n .intro-jump:hover{border-color:var(--gold);color:var(--gold);}\n .content-section{padding:60px 40px;background:var(--warm-white);}\n .content-section.cream{background:var(--cream);}\n .content-section.navy-bg{background:var(--navy);}\n .section-inner{max-width:860px;margin:0 auto;}\n .section-label{font-size:12px;letter-spacing:3px;text-transform:uppercase;color:var(--gold);margin-bottom:18px;display:flex;align-items:center;gap:14px;}\n .content-section.navy-bg .section-label{color:var(--gold-light);}\n .section-title{font-size:34px;font-weight:300;color:var(--navy);margin-bottom:32px;line-height:1.2;}\n .content-section.navy-bg .section-title{color:white;}\n .section-intro{font-size:16px;color:var(--text-mid);line-height:1.85;margin-bottom:36px;}\n .content-section.navy-bg .section-intro{color:rgba(255,255,255,0.65);}\n .body-text{font-size:16px;color:var(--text-mid);line-height:1.9;margin-bottom:22px;}\n .body-text a{color:var(--gold);text-decoration:none;}\n .body-text a:hover{text-decoration:underline;}\n .content-section.navy-bg .body-text{color:rgba(255,255,255,0.65);}\n .sub-heading{font-size:20px;font-weight:700;color:var(--navy);margin:36px 0 14px;line-height:1.3;}\n .content-section.navy-bg .sub-heading{color:var(--gold-light);}\n .rate-table{width:100%;border-collapse:collapse;margin:28px 0 36px;font-size:15px;}\n .rate-table thead th{background:var(--navy);color:white;padding:12px 16px;text-align:left;font-size:12px;font-weight:700;letter-spacing:1.5px;text-transform:uppercase;}\n .content-section.navy-bg .rate-table thead th{background:rgba(255,255,255,0.12);}\n .rate-table tbody tr{border-bottom:1px solid var(--border);}\n .content-section.navy-bg .rate-table tbody tr{border-bottom:1px solid rgba(255,255,255,0.1);}\n .rate-table tbody tr:last-child{border-bottom:none;}\n .rate-table tbody td{padding:13px 16px;color:var(--text-mid);vertical-align:top;}\n .content-section.navy-bg .rate-table tbody td{color:rgba(255,255,255,0.65);background:rgba(255,255,255,0.03);}\n .rate-table tbody tr:nth-child(even) td{background:var(--cream);}\n .content-section.navy-bg .rate-table tbody tr:nth-child(even) td{background:rgba(255,255,255,0.05);}\n .rate-badge{display:inline-block;font-weight:700;color:var(--navy);font-size:15px;}\n .content-section.navy-bg .rate-badge{color:var(--gold-light);}\n .rate-note{font-size:13px;color:var(--text-light);display:block;margin-top:3px;}\n .info-grid{display:grid;grid-template-columns:1fr 1fr;gap:2px;background:var(--border);margin:32px 0;}\n .content-section.navy-bg .info-grid{background:rgba(255,255,255,0.1);}\n .info-box{background:var(--warm-white);padding:28px;}\n .content-section.cream .info-box{background:var(--warm-white);}\n .content-section.navy-bg .info-box{background:var(--navy-mid);}\n .info-box-label{font-size:11px;letter-spacing:2px;text-transform:uppercase;color:var(--gold);margin-bottom:10px;font-weight:700;}\n .info-box h4{font-size:17px;font-weight:700;color:var(--navy);margin-bottom:10px;line-height:1.3;}\n .content-section.navy-bg .info-box h4{color:var(--gold-light);}\n .info-box p{font-size:15px;color:var(--text-mid);line-height:1.8;}\n .content-section.navy-bg .info-box p{color:rgba(255,255,255,0.6);}\n .callout{background:var(--cream);border-left:3px solid var(--gold);padding:24px 28px;margin:28px 0;}\n .content-section.cream .callout{background:var(--warm-white);}\n .content-section.navy-bg .callout{background:rgba(203,133,105,0.12);border-left-color:var(--gold-light);}\n .callout p{font-size:15px;color:var(--text-mid);line-height:1.8;margin:0 0 10px;}\n .callout p:last-child{margin-bottom:0;}\n .content-section.navy-bg .callout p{color:rgba(255,255,255,0.65);}\n .callout strong{color:var(--navy);}\n .content-section.navy-bg .callout strong{color:var(--gold-light);}\n .callout a{color:var(--gold);font-weight:700;text-decoration:none;}\n .callout a:hover{text-decoration:underline;}\n .example-grid{display:grid;grid-template-columns:1fr 1fr;gap:24px;margin:32px 0;}\n .example-box{border:1px solid var(--border);}\n .example-header{background:var(--navy);padding:16px 20px;}\n .example-header h4{font-size:13px;font-weight:700;letter-spacing:1px;text-transform:uppercase;color:var(--gold-light);margin-bottom:3px;}\n .example-header p{font-size:12px;color:rgba(255,255,255,0.5);margin:0;}\n .example-body{padding:18px 20px;background:var(--warm-white);}\n .content-section.cream .example-body{background:var(--cream);}\n .example-row{display:flex;justify-content:space-between;align-items:baseline;padding:8px 0;border-bottom:1px solid var(--border);font-size:14px;gap:12px;}\n .example-row:last-child{border-bottom:none;}\n .example-row.subtotal{border-top:1px solid var(--navy);border-bottom:1px solid var(--border);padding-top:10px;}\n .example-row.total{font-weight:700;border-top:2px solid var(--navy);border-bottom:none;padding-top:12px;margin-top:2px;}\n .example-label{color:var(--text-mid);line-height:1.5;}\n .example-label small{font-size:12px;color:var(--text-light);display:block;}\n .example-amount{font-weight:700;color:var(--navy);white-space:nowrap;}\n .example-amount.debit{color:#b03030;}\n .example-amount.net{color:#2a6e35;}\n .example-footer{padding:10px 20px;background:var(--cream);border-top:1px solid var(--border);font-size:13px;color:var(--text-light);}\n .step-list{list-style:none;margin:20px 0 28px;}\n .step-list li{display:flex;gap:18px;padding:16px 0;border-bottom:1px solid var(--border);font-size:15px;color:var(--text-mid);line-height:1.75;}\n .content-section.navy-bg .step-list li{border-bottom-color:rgba(255,255,255,0.08);color:rgba(255,255,255,0.65);}\n .step-list li:last-child{border-bottom:none;}\n .step-num{font-size:20px;font-weight:900;color:var(--gold);flex-shrink:0;min-width:28px;line-height:1.2;}\n .step-list li strong{color:var(--navy);display:block;margin-bottom:4px;font-size:15px;}\n .content-section.navy-bg .step-list li strong{color:rgba(255,255,255,0.9);}\n .rule{border:none;border-top:1px solid var(--border);margin:40px 0;}\n .disclaimer-section{padding:40px;background:var(--navy);border-top:1px solid rgba(255,255,255,0.08);}\n .disclaimer-inner{max-width:860px;margin:0 auto;}\n .disclaimer-inner p{font-size:13px;color:rgba(255,255,255,0.38);line-height:1.8;}\n .disclaimer-inner a{color:rgba(255,255,255,0.5);text-decoration:none;}\n .cta-section{padding:90px 40px;background:var(--cream);border-top:1px solid var(--border);}\n .cta-inner{max-width:680px;margin:0 auto;text-align:center;}\n .cta-inner .section-label{justify-content:center;}\n .cta-inner h2{font-size:34px;font-weight:300;color:var(--navy);margin-bottom:20px;line-height:1.2;}\n .cta-inner>p{font-size:17px;color:var(--text-mid);margin-bottom:40px;line-height:1.85;}\n .cta-contact-box{margin-top:20px;padding:36px 44px;background:var(--warm-white);border:1px solid var(--border);display:inline-block;min-width:320px;}\n .cta-contact-box .box-label{font-size:12px;text-transform:uppercase;letter-spacing:2px;color:var(--text-light);margin-bottom:12px;}\n .cta-contact-box a.email{font-size:22px;font-weight:300;color:var(--navy);text-decoration:none;display:block;margin-bottom:16px;}\n @media(max-width:760px){\n .country-banner{padding:0 24px;}\n .country-banner-inner{grid-template-columns:1fr;}\n .cb-divider{display:none;}\n .cb-side,.cb-side:last-child{padding:36px 0;}\n .cb-side:last-child{border-top:1px solid var(--border);}\n .guide-banner-inner{flex-direction:column;padding:32px 24px;gap:24px;align-items:flex-start;}\n .hero{padding:70px 24px 64px;}\n .intro-cols,.info-grid,.example-grid{grid-template-columns:1fr;}\n .content-section{padding:60px 24px;}\n .intro-strip{padding:50px 24px;}\n .cta-section{padding:60px 24px;}\n .cta-contact-box{padding:28px 24px;min-width:0;width:100%;}\n .rate-table{font-size:14px;}\n .rate-table tbody td,.rate-table thead th{padding:10px 12px;}\n }\n .country-banner{background:var(--cream);border-bottom:1px solid var(--border);padding:0 40px;}\n .country-banner-inner{max-width:860px;margin:0 auto;display:grid;grid-template-columns:1fr 1px 1fr;}\n .cb-divider{background:var(--border);align-self:stretch;margin:48px 0;}\n .cb-side{padding:48px 48px 48px 0;}\n .cb-side:last-child{padding:48px 0 48px 48px;}\n .cb-flag{font-size:36px;margin-bottom:16px;line-height:1;}\n .cb-country{font-size:11px;letter-spacing:3px;text-transform:uppercase;color:var(--gold);margin-bottom:20px;display:flex;align-items:center;gap:10px;}\n .cb-country::before{content:'';display:block;width:20px;height:1px;background:var(--gold);}\n .cb-stats{display:flex;flex-direction:column;gap:14px;}\n .cb-stat{display:flex;justify-content:space-between;align-items:baseline;border-bottom:1px solid var(--border);padding-bottom:10px;gap:20px;}\n .cb-stat:last-child{border-bottom:none;padding-bottom:0;}\n .cb-stat-label{font-size:13px;color:var(--text-light);}\n .cb-stat-value{font-size:14px;font-weight:700;color:var(--navy);text-align:right;}\n .guide-banner{background:var(--navy-mid);border-top:3px solid var(--gold);}\n .guide-banner-inner{max-width:860px;margin:0 auto;padding:44px 40px;display:flex;justify-content:space-between;align-items:center;gap:40px;}\n .guide-banner-text .guide-banner-label{font-size:11px;letter-spacing:2px;text-transform:uppercase;color:var(--gold-light);margin-bottom:10px;}\n .guide-banner-text h3{font-size:22px;font-weight:300;color:white;margin-bottom:8px;line-height:1.3;}\n .guide-banner-text p{font-size:14px;color:rgba(255,255,255,0.6);line-height:1.75;max-width:440px;}\n .guide-banner a.btn-guide{display:inline-block;border:1px solid var(--gold);color:var(--gold-light)!important;text-decoration:none;padding:13px 32px;font-size:13px;font-weight:500;letter-spacing:1.5px;text-transform:uppercase;transition:background .3s,color .3s;white-space:nowrap;}\n .guide-banner a.btn-guide:hover{background:var(--gold);color:#fff!important;}\n \/* CHECKLIST *\/\n .checklist-section{background:var(--navy);padding:90px 40px;color:white;}\n .checklist-section .section-label{color:var(--gold-light);}\n .checklist-section .section-title{color:white;font-weight:300;margin-bottom:16px;}\n .checklist-intro{color:rgba(255,255,255,0.65);font-size:16px;margin-bottom:32px;line-height:1.8;}\n .checklist-grid{display:grid;grid-template-columns:1fr 1fr;gap:2px;background:rgba(255,255,255,0.08);}\n .checklist-item{background:var(--navy-mid);padding:32px 36px;display:flex;gap:22px;align-items:flex-start;transition:background .25s;}\n .checklist-item:hover{background:#213349;}\n .ci-number{font-size:26px;color:var(--gold);font-weight:700;line-height:1;flex-shrink:0;width:30px;margin-top:2px;}\n .ci-content h4{font-weight:700;font-size:18px;color:white;margin-bottom:8px;line-height:1.4;}\n .ci-content p{font-size:15px;color:rgba(255,255,255,0.55);line-height:1.75;}\n .checklist-note{margin-top:44px;border-left:2px solid var(--gold);padding:20px 28px;background:rgba(203,133,105,0.08);color:rgba(255,255,255,0.72);font-size:17px;line-height:1.8;font-style:italic;}\n .warning-strip{background:var(--navy-mid);padding:32px 40px;}\n .warning-inner{max-width:860px;margin:0 auto;display:flex;gap:24px;align-items:flex-start;}\n .warning-icon{color:var(--gold);font-size:22px;flex-shrink:0;margin-top:2px;}\n .warning-inner p{font-size:15px;color:rgba(255,255,255,0.72);line-height:1.8;}\n<\/style>\n<\/head>\n<body>\n<div class=\"dq-page-wrap\">\n\n\n<section class=\"hero\">\n <div class=\"hero-inner\">\n <div class=\"hero-label\">D&Q Lawyers · Cross-Border Tax Guides<\/div>\n <h1>Brazil–United States<br><em>Tax Guide<\/em><\/h1>\n <p class=\"hero-sub\">A practical guide to the tax framework governing transactions, investments, and individuals operating between Brazil and the United States.<\/p>\n <a href=\"mailto:info@deqlaw.com.br\" class=\"btn-primary\">Contact Us<\/a>\n <\/div>\n<\/section>\n\n\n<section class=\"country-banner\">\n <div class=\"country-banner-inner\">\n <div class=\"cb-side\">\n <div class=\"cb-flag\">🇺🇸<\/div>\n <div class=\"cb-country\">United States<\/div>\n <div class=\"cb-stats\">\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">Corporate tax rate<\/span><span class=\"cb-stat-value\">21%<\/span><\/div>\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">Double tax agreement with Brazil<\/span><span class=\"cb-stat-value\">None in force<\/span><\/div>\n <\/div>\n <\/div>\n <div class=\"cb-divider\"><\/div>\n <div class=\"cb-side\">\n <div class=\"cb-flag\">🇧🇷<\/div>\n <div class=\"cb-country\">Brazil<\/div>\n <div class=\"cb-stats\">\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">Corporate tax rate (IRPJ + CSLL)<\/span><span class=\"cb-stat-value\">34% headline \/ often lower<\/span><\/div>\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">WHT on dividends (IRRF, Law 15,270\/2025)<\/span><span class=\"cb-stat-value\">10%<\/span><\/div>\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">WHT on interest (IRRF)<\/span><span class=\"cb-stat-value\">15% \/ 25%<\/span><\/div>\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">WHT on royalties (IRRF + CIDE)<\/span><span class=\"cb-stat-value\">up to 25%<\/span><\/div>\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">Double tax agreement with the US<\/span><span class=\"cb-stat-value\">None in force<\/span><\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"guide-banner\">\n <div class=\"guide-banner-inner\">\n <div class=\"guide-banner-text\">\n <div class=\"guide-banner-label\">D&Q Lawyers · Resource<\/div>\n <h3>New to doing business in Brazil? Start with the full guide.<\/h3>\n <p>Our Brazil Tax Guide covers the complete Brazilian tax system: corporate taxes, indirect taxes, employment taxes, the tax reform transition, and the key obligations for foreign investors.<\/p>\n <\/div>\n <a href=\"https:\/\/www.deqlaw.com.br\/en\/brazil-tax-guide\/\" class=\"btn-guide\">Brazil Tax Guide<\/a>\n <\/div>\n<\/section>\n\n\n<section class=\"intro-strip\">\n <div class=\"intro-inner\">\n <h2>The Brazil–US tax relationship in the absence of a treaty.<\/h2>\n <div class=\"intro-cols\">\n <div class=\"intro-col\">\n <p>The United States and Brazil are two of the largest economies in the Western Hemisphere, yet they remain without a bilateral tax treaty. This gap creates significant complexity for investors, companies, and individuals with interests in both countries, requiring reliance on unilateral relief mechanisms under the domestic law of each jurisdiction.<\/p>\n <\/div>\n <div class=\"intro-col\">\n <p>This guide covers Brazilian withholding income taxes on outbound payments, how those taxes stack on a single transaction, US taxation of Brazil-sourced income, transfer pricing, the treatment of individuals, and key structuring considerations. For advice specific to your situation, <a href=\"mailto:info@deqlaw.com.br\">contact us<\/a>.<\/p>\n <\/div>\n <\/div>\n <div class=\"intro-jumps\">\n <a href=\"#no-dta\" class=\"intro-jump\">No DTA: implications<\/a>\n <a href=\"#key-issues\" class=\"intro-jump\">Key tax issues<\/a>\n <a href=\"#brazil-taxes-outbound\" class=\"intro-jump\">Withholding income taxes<\/a>\n <a href=\"#brazil-tax-regimes\" class=\"intro-jump\">Brazilian tax regimes<\/a>\n <a href=\"#tax-stacking\" class=\"intro-jump\">How taxes stack up<\/a>\n <a href=\"#us-taxes-brazil\" class=\"intro-jump\">US taxation of Brazilian income<\/a>\n <a href=\"#transfer-pricing\" class=\"intro-jump\">Transfer pricing<\/a>\n <a href=\"#individuals\" class=\"intro-jump\">Individuals<\/a>\n <a href=\"#structuring\" class=\"intro-jump\">Structuring considerations<\/a>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section\" id=\"no-dta\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Background<\/div>\n <h2 class=\"section-title\">Having no DTA does not mean being double-taxed, but it does mean paying more attention.<\/h2>\n <p class=\"section-intro\">The United States and Brazil are two of the largest economies in the Western Hemisphere, yet they have never concluded a bilateral tax treaty. Negotiations began in the 1990s but stalled over structural differences between Brazil’s hybrid treaty model and the US Model Income Tax Convention. The absence of a treaty is a practical reality that most participants in this bilateral relationship navigate successfully, but it requires proactive structuring and a clear understanding of both countries’ domestic rules.<\/p>\n <p class=\"body-text\">The foreign tax credit (<strong>FTC<\/strong>) under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/901\">IRC sections 901–909<\/a> is the primary mechanism for avoiding double taxation on Brazil–US income flows. In most well-structured arrangements, Brazilian taxes paid, including the 10% dividend withholding tax under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a> and the 15% IRRF on interest and royalties, are creditable against US federal income tax, producing a combined burden that generally does not exceed the higher of the two countries’ rates. The more significant constraints are the absence of a mutual agreement procedure for resolving transfer pricing disputes, and the overlay of US GILTI and Subpart F rules, which capture certain Brazilian profits before distribution and have no equivalent in most DTA jurisdictions.<\/p>\n\n <div class=\"info-grid\">\n <div class=\"info-box\">\n <div class=\"info-box-label\">Practical consequence<\/div>\n <h4>Full statutory rates apply; FTC under IRC 901–909 provides relief<\/h4>\n <p>Brazilian IRRF and US withholding taxes (30% on dividends and royalties paid to non-residents) apply at full statutory rates with no treaty reduction. The US FTC generally allows Brazilian taxes to offset US federal income tax on the same income, subject to the FTC limitation and separate basket rules under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/904\">IRC section 904<\/a>.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Practical consequence<\/div>\n <h4>GILTI and Subpart F apply to Brazilian CFCs<\/h4>\n <p>US corporations with Brazilian controlled foreign corporations (<strong>CFCs<\/strong>) are subject to GILTI and Subpart F rules that may bring Brazilian profits into US taxable income before any distribution is made. These regimes have no equivalent in most DTA jurisdictions and require modelling independently of the withholding tax analysis.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Practical consequence<\/div>\n <h4>No MAP: transfer pricing disputes resolved domestically<\/h4>\n <p>Both countries apply OECD arm’s-length transfer pricing rules, but the absence of a mutual agreement procedure (<strong>MAP<\/strong>) means that if both the <a href=\"https:\/\/www.gov.br\/receitafederal\/en\">Federal Revenue Department<\/a> and the IRS adjust the same transaction in different directions, the resulting double taxation must be resolved through domestic proceedings. Only unilateral APAs are available.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Practical consequence<\/div>\n <h4>Information exchange is extensive regardless of treaty status<\/h4>\n <p>Brazil and the United States exchange financial account data under FATCA, participate in the OECD Common Reporting Standard (<strong>CRS<\/strong>), and since August 2025 exchange information spontaneously under a new Competent Authority Arrangement. The absence of a DTA does not reduce the visibility of cross-border structures to either tax authority.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"callout\">\n <p><strong>Treaty negotiations.<\/strong> Renewed interest in a Brazil–US DTA is reported periodically. As of the date of this guide, no treaty is in force or at an advanced stage of ratification. Businesses should plan on the basis that the current no-treaty position will continue for the foreseeable future and monitor legislative developments in both countries.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"checklist-section\" id=\"key-issues\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Key Tax Issues<\/div>\n <h2 class=\"section-title\">The main taxes that affect cross-border operations<\/h2>\n <p class=\"checklist-intro\">The following taxes arise in virtually every substantive business relationship between US and Brazilian entities. Each operates independently; satisfying one obligation does not reduce or eliminate any other.<\/p>\n <div class=\"checklist-grid\">\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">01<\/div>\n <div class=\"ci-content\">\n <h4>Brazilian corporate income tax: IRPJ and CSLL<\/h4>\n <p>Brazilian companies are subject to Corporate Income Tax (<em>Imposto de Renda das Pessoas Jurídicas<\/em>, <strong>IRPJ<\/strong>) at 15%, with a 10% surtax on annual taxable income exceeding R$240,000, and Social Contribution on Net Income (<em>Contribuição Social sobre o Lucro Líquido<\/em>, <strong>CSLL<\/strong>) at 9% for most companies. The combined standard rate under the Actual Profit regime is effectively <strong>34%<\/strong>. Many companies qualify for the Deemed Profit regime and pay considerably less, which also affects GILTI and Pillar Two analysis for US parents.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">02<\/div>\n <div class=\"ci-content\">\n <h4>US federal corporate income tax, GILTI and Subpart F<\/h4>\n <p>US resident companies pay federal corporate tax at <strong>21%<\/strong> on worldwide income. US corporations with Brazilian controlled foreign corporations (<strong>CFCs<\/strong>) are also subject to the Global Intangible Low-Taxed Income (<strong>GILTI<\/strong>) and Subpart F regimes under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/951\" class=\"ref-link-light\">IRC sections 951–965<\/a>, which may bring Brazilian profits into US taxable income before any distribution is made, independent of the withholding tax analysis.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">03<\/div>\n <div class=\"ci-content\">\n <h4>Brazilian withholding income tax (IRRF) on outbound payments<\/h4>\n <p>Brazil imposes Withholding Income Tax (<em>Imposto de Renda Retido na Fonte<\/em>, <strong>IRRF<\/strong>) on payments to non-residents. Key rates: dividends <strong>10%<\/strong> (<a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\" class=\"ref-link-light\">Law 15,270\/2025<\/a>); interest <strong>15%<\/strong> (rising to 25% for low-tax jurisdictions; some passive US holding structures may qualify); royalties and technical services <strong>15%<\/strong>; general services <strong>25%<\/strong>. With no DTA, US recipients cannot reduce these rates.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">04<\/div>\n <div class=\"ci-content\">\n <h4>Transfer pricing: dual compliance obligations<\/h4>\n <p>Both countries apply OECD arm’s-length transfer pricing rules. Brazil’s regime was reformed by <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2023\/lei\/l14596.htm\" class=\"ref-link-light\">Law 14,596\/2023<\/a>. The United States applies rules under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/482\" class=\"ref-link-light\">IRC section 482<\/a> and Treasury Regulation section 1.482. Related-party transactions must independently satisfy both regimes. Without a mutual agreement procedure (<strong>MAP<\/strong>), disputes cannot be resolved bilaterally and only unilateral APAs are available.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">05<\/div>\n <div class=\"ci-content\">\n <h4>Brazilian indirect taxes: PIS, COFINS, ICMS and ISS<\/h4>\n <p>Brazilian businesses face a layered indirect tax burden: <strong>PIS<\/strong> (0.65–1.65%) and <strong>COFINS<\/strong> (3–7.6%) on gross revenue; <strong>ICMS<\/strong> (state VAT, typically 12–18%) on goods; and <strong>ISS<\/strong> (municipal services tax, 2–5%) on services. Cross-border service payments from Brazil to US providers attract PIS\/COFINS-Import on the Brazilian side. These are not creditable as foreign income taxes under US rules and represent a real cost to the structure.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">06<\/div>\n <div class=\"ci-content\">\n <h4>US branch profits tax and state and local taxes<\/h4>\n <p>A Brazilian company operating in the United States through a branch is subject to the US branch profits tax at <strong>30%<\/strong> on after-tax earnings deemed repatriated to the Brazilian head office, without treaty reduction. US state and local income taxes add a further layer of tax not reduced by any Brazil–US bilateral instrument. Combined federal and state effective rates for US-sourced income can reach 25–30% or more depending on the state.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">07<\/div>\n <div class=\"ci-content\">\n <h4>IOF: Brazil’s financial transactions tax<\/h4>\n <p>Brazil’s Tax on Financial Transactions (<em>Imposto sobre Operações Financeiras<\/em>, <strong>IOF<\/strong>) applies to foreign exchange transactions, credit operations and insurance. Cross-border loan transactions attract IOF on the foreign exchange leg. IOF on loan proceeds was reduced to 0% for loans exceeding 180 days following a 2022 reform. Short-term funding arrangements and capital contributions in cash attract IOF at varying rates.<\/p>\n <\/div>\n <\/div>\n\n <\/div>\n <div class=\"checklist-note\">No single mechanism eliminates double taxation between the United States and Brazil. Every cross-border payment stream must be modelled from both sides (including GILTI and Subpart F implications for undistributed Brazilian profits), applying each country’s domestic rules independently. The combined tax cost often exceeds what applies in treaty jurisdictions.<\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section cream\" id=\"brazil-taxes-outbound\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Brazilian tax<\/div>\n <h2 class=\"section-title\">Brazilian withholding income taxes on payments to US recipients<\/h2>\n <p class=\"section-intro\">Brazil imposes Withholding Income Tax (<em>Imposto de Renda Retido na Fonte<\/em>, <strong>IRRF<\/strong>) on most categories of income paid to non-resident recipients, including US entities and individuals. The IRRF is withheld by the Brazilian payer and remitted to the <a href=\"https:\/\/www.gov.br\/receitafederal\/en\">Federal Revenue Department (<em>Receita Federal do Brasil<\/em>)<\/a>.<\/p>\n\n <h3 class=\"sub-heading\">Withholding income tax (IRRF) rates<\/h3>\n <table class=\"rate-table\">\n <thead><tr><th>Payment type<\/th><th>IRRF rate<\/th><th>Notes<\/th><\/tr><\/thead>\n <tbody>\n <tr>\n <td><strong>Dividends<\/strong><\/td>\n <td><span class=\"rate-badge\">10%<\/span><\/td>\n <td><a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a> introduced a 10% withholding income tax on dividends remitted abroad. US shareholders should review their foreign tax credit (<strong>FTC<\/strong>) position under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/901\">IRC sections 901–909<\/a>, as this IRRF should generally be creditable.<\/td>\n <\/tr>\n <tr>\n <td><strong>Interest<\/strong><\/td>\n <td><span class=\"rate-badge\">15%<\/span><span class=\"rate-note\">Standard rate<\/span><\/td>\n <td>Interest paid to non-residents is generally subject to 15% IRRF. A rate of 25% applies where the beneficiary is resident in a low-tax jurisdiction under Brazilian rules.<\/td>\n <\/tr>\n <tr>\n <td><strong>Interest on Net Equity (JCP)<\/strong><\/td>\n <td><span class=\"rate-badge\">17.5%<\/span><\/td>\n <td>Interest on Net Equity (<em>Juros sobre Capital Próprio<\/em>, <strong>JCP<\/strong>) is a Brazilian mechanism allowing notional interest deductions on equity. The IRRF rate on JCP payments to non-residents was increased to 17.5% by <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/leis\/lcp\/lcp224.htm\">Complementary Law 224\/2025<\/a>.<\/td>\n <\/tr>\n <tr>\n <td><strong>Royalties and technical services<\/strong><\/td>\n <td><span class=\"rate-badge\">15%<\/span><span class=\"rate-note\">CIDE may also apply<\/span><\/td>\n <td>Royalties for technology transfer and technical services attract 15% IRRF. The Economic Intervention Contribution (<em>Contribuição de Intervenção no Domínio Econômico<\/em>, <strong>CIDE<\/strong>) of 10% may also apply on technology remittances, borne by the Brazilian payer on top of the contract price.<\/td>\n <\/tr>\n <tr>\n <td><strong>Services (general)<\/strong><\/td>\n <td><span class=\"rate-badge\">25%<\/span><\/td>\n <td>Remuneration for services rendered by non-resident individuals generally attracts 25% IRRF. Services rendered by non-resident legal entities may be subject to 15% or 25% depending on the nature and structure of the payment.<\/td>\n <\/tr>\n <tr>\n <td><strong>Capital gains<\/strong><\/td>\n <td><span class=\"rate-badge\">15–22.5%<\/span><\/td>\n <td>Capital gains realised by non-residents on Brazilian assets are subject to a progressive IRRF schedule: 15% up to BRL 5 million, rising to 22.5% above BRL 30 million.<\/td>\n <\/tr>\n <tr>\n <td><strong>Rental income<\/strong><\/td>\n <td><span class=\"rate-badge\">15%<\/span><\/td>\n <td>Rental income paid to non-resident individuals or entities is subject to 15% IRRF, withheld by the Brazilian payer.<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n\n <h3 class=\"sub-heading\">Other Brazilian taxes that apply alongside the IRRF<\/h3>\n <p class=\"body-text\">The IRRF is not the only Brazilian tax cost on cross-border payments. Depending on the nature of the transaction, the Brazilian payer may also be liable for the following, borne on top of the contract price.<\/p>\n <div class=\"info-grid\">\n <div class=\"info-box\">\n <div class=\"info-box-label\">Additional tax<\/div>\n <h4><strong>IOF<\/strong> (Tax on Financial Transactions)<\/h4>\n <p>IOF applies to the foreign exchange transaction associated with a cross-border payment. The rate varies by transaction type and tenor and is subject to frequent change by executive decree. It is borne by the Brazilian party executing the currency conversion.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Additional tax<\/div>\n <h4><strong>PIS<\/strong>-Import and <strong>COFINS<\/strong>-Import<\/h4>\n <p>Services imported into Brazil attract PIS-Import and COFINS-Import. The standard non-cumulative rates are 1.65% (PIS-Import) and 7.6% (COFINS-Import), totalling approximately 9.25% of the contract value for services. Companies on the cumulative basis pay reduced rates of 0.65% and 3% respectively. These contributions are levied on the Brazilian importer of services and are borne in addition to the contract price.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Additional tax<\/div>\n <h4><strong>ISS<\/strong> (Municipal Services Tax)<\/h4>\n <p>ISS applies to imported services at rates between 2% and 5%, depending on the municipality and the classification of the service. It is assessed on the Brazilian payer on the gross contract value.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Additional tax<\/div>\n <h4><strong>CIDE<\/strong> (Economic Intervention Contribution)<\/h4>\n <p>CIDE at 10% applies to technology transfer and technical service payments remitted abroad. It is borne by the Brazilian payer on top of the contract value, not withheld from the US party’s receipt.<\/p>\n <\/div>\n <\/div>\n <div class=\"callout\">\n <p><strong>Indirect taxes reform: transitional period.<\/strong> 2026 is the first transitional year of Brazil’s new dual-VAT system. Companies must configure for dual compliance while new <em>Contribuição sobre Bens e Serviços<\/em> (<strong>CBS<\/strong>, a federal tax) and <em>Imposto sobre Bens e Serviços<\/em> (<strong>IBS<\/strong>, a state and municipal tax) fields are tested on electronic invoices. Full abolition of PIS and COFINS begins in 2027, with IBS replacing ICMS and ISS through 2033. Once fully implemented, CBS and IBS will together operate as a broad-based value added tax structurally comparable to modern VAT systems internationally. See our <a href=\"https:\/\/www.deqlaw.com.br\/en\/brazils-tax-reform-what-every-business-needs-to-know\/\">Brazil tax reform guide<\/a> for a full overview.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section cream\" id=\"brazil-tax-regimes\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Brazilian corporate tax<\/div>\n <h2 class=\"section-title\">The 34% headline rate is not what most Brazilian companies actually pay.<\/h2>\n <p class=\"section-intro\">The 34% combined IRPJ\/CSLL rate applies under the Actual Profit regime (Lucro Real), where tax is calculated on audited net profit after allowable deductions. Many Brazilian companies instead use the Deemed Profit regime (Lucro Presumido), which produces substantially lower effective rates and has important implications for US investors modelling their returns and assessing GILTI and Pillar Two exposure.<\/p>\n <div class=\"info-grid\">\n <div class=\"info-box\">\n <div class=\"info-box-label\">Tax regime<\/div>\n <h4>Actual Profit regime (Lucro Real)<\/h4>\n <p>Mandatory for financial institutions and companies with annual gross revenue above R$78 million. Tax is calculated on audited net profit after deductions. IRPJ at 15% plus 10% surtax on income over R$240,000 per year; CSLL at 9%. Combined headline rate: <strong>34%<\/strong> of taxable profit. Available by election to any company regardless of size.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Tax regime<\/div>\n <h4>Deemed Profit regime (Lucro Presumido)<\/h4>\n <p>Available to companies with annual gross revenue up to R$78 million. Tax base is a fixed percentage of gross revenue rather than actual profit. <strong>Services:<\/strong> 32% deemed margin, producing effective combined IRPJ\/CSLL on revenue of roughly 11–14%. <strong>Commerce and industry:<\/strong> 8% deemed margin, roughly 3–5% on revenue. A highly profitable service company may pay considerably less than 34% of actual profit.<\/p>\n <\/div>\n <\/div>\n <div class=\"callout\">\n <p><strong>GILTI and Pillar Two implications.<\/strong> A Brazilian controlled foreign corporation (<strong>CFC<\/strong>) on the Deemed Profit regime may carry a low effective tax rate relative to its actual profitability. For US shareholders, this affects the GILTI high-tax exclusion analysis: where the Brazilian entity’s effective rate falls below 90% of the US corporate rate (currently 18.9%), GILTI inclusion may arise. It also affects Pillar Two: Brazil enacted its own minimum tax rules under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2024\/lei\/L15079.htm\">Law 15,079\/2024<\/a>, and the interaction between US GILTI and Brazilian top-up tax requires careful modelling. US-headquartered multinationals with Brazilian subsidiaries should assess GILTI and GloBE exposure on an entity-by-entity basis.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section\" id=\"tax-stacking\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Tax stacking<\/div>\n <h2 class=\"section-title\">How Brazilian taxes stack up on a single transaction<\/h2>\n <p class=\"section-intro\">One of the most important features of the Brazil–US tax relationship is that multiple Brazilian taxes apply simultaneously to the same payment. The IRRF reduces what the US party receives; additional taxes (PIS-Import, COFINS-Import, ISS, CIDE, IOF) increase what the Brazilian party pays. The combined effect makes the true cost of a cross-border transaction substantially higher than the face value of the contract, often by 20–40% or more.<\/p>\n <p class=\"body-text\">The examples below use a base contract value of USD 100,000. IOF is excluded given the variability of its rate. The US tax figures in examples 3 and 4 use a simplified 21% corporate rate and do not account for GILTI, Subpart F, or state taxes.<\/p>\n\n <div class=\"example-grid\">\n <div class=\"example-box\">\n <div class=\"example-header\"><h4>Example 1: Technical services fee<\/h4><p>USD 100,000 paid by a Brazilian company to a US service provider<\/p><\/div>\n <div class=\"example-body\">\n <div class=\"example-row\"><span class=\"example-label\">Contract value<\/span><span class=\"example-amount\">USD 100,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">IRRF at 15%, withheld from payment<small>Borne by the US provider; remitted to Receita Federal<\/small><\/span><span class=\"example-amount debit\">− USD 15,000<\/span><\/div>\n <div class=\"example-row subtotal\"><span class=\"example-label\"><strong>Net received by US provider<\/strong><\/span><span class=\"example-amount net\">USD 85,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">CIDE at 10%<small>Additional cost borne by Brazilian payer (technical services)<\/small><\/span><span class=\"example-amount debit\">+ USD 10,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">PIS-Import at 1.65% (non-cumulative)<small>Additional cost borne by Brazilian payer<\/small><\/span><span class=\"example-amount debit\">+ USD 1,650<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">COFINS-Import at 7.6% (non-cumulative)<small>Additional cost borne by Brazilian payer<\/small><\/span><span class=\"example-amount debit\">+ USD 7,600<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">ISS at 5% (São Paulo)<small>Additional cost borne by Brazilian payer<\/small><\/span><span class=\"example-amount debit\">+ USD 5,000<\/span><\/div>\n <div class=\"example-row total\"><span class=\"example-label\">Total cost to Brazilian payer<\/span><span class=\"example-amount\">USD 124,250<\/span><\/div>\n <\/div>\n <div class=\"example-footer\">Total Brazilian tax burden: USD 39,250 (39.25% of contract value). CIDE applies because technical services involve technology transfer to the Brazilian payer.<\/div>\n <\/div>\n <div class=\"example-box\">\n <div class=\"example-header\"><h4>Example 2: Technology royalties<\/h4><p>USD 100,000 royalty paid by a Brazilian licensee to a US licensor<\/p><\/div>\n <div class=\"example-body\">\n <div class=\"example-row\"><span class=\"example-label\">Contract value<\/span><span class=\"example-amount\">USD 100,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">IRRF at 15%, withheld from payment<small>Borne by the US licensor<\/small><\/span><span class=\"example-amount debit\">− USD 15,000<\/span><\/div>\n <div class=\"example-row subtotal\"><span class=\"example-label\"><strong>Net received by US licensor<\/strong><\/span><span class=\"example-amount net\">USD 85,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">CIDE at 10%<small>Additional cost borne by Brazilian payer<\/small><\/span><span class=\"example-amount debit\">+ USD 10,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">PIS-Import at 1.65% (non-cumulative)<small>Additional cost borne by Brazilian payer<\/small><\/span><span class=\"example-amount debit\">+ USD 1,650<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">COFINS-Import at 7.6% (non-cumulative)<small>Additional cost borne by Brazilian payer<\/small><\/span><span class=\"example-amount debit\">+ USD 7,600<\/span><\/div>\n <div class=\"example-row total\"><span class=\"example-label\">Total cost to Brazilian payer<\/span><span class=\"example-amount\">USD 119,250<\/span><\/div>\n <\/div>\n <div class=\"example-footer\">Total Brazilian tax burden: USD 34,250 (34.25% of contract value). Brazilian IRRF on royalties should generally qualify as a creditable foreign tax for US FTC purposes.<\/div>\n <\/div>\n <div class=\"example-box\">\n <div class=\"example-header\"><h4>Example 3: Dividend distribution<\/h4><p>USD 100,000 dividend remitted by Brazilian subsidiary to US parent<\/p><\/div>\n <div class=\"example-body\">\n <div class=\"example-row\"><span class=\"example-label\">Profit available for distribution<\/span><span class=\"example-amount\">USD 100,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">IRRF at 10%, Law 15,270\/2025<small>Withheld by Brazilian subsidiary<\/small><\/span><span class=\"example-amount debit\">− USD 10,000<\/span><\/div>\n <div class=\"example-row subtotal\"><span class=\"example-label\"><strong>Net received by US parent<\/strong><\/span><span class=\"example-amount net\">USD 90,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">US corporate income tax at 21%<small>On USD 100,000 before FTC<\/small><\/span><span class=\"example-amount debit\">USD 21,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">FTC for Brazilian IRRF<small>Creditable against US federal tax<\/small><\/span><span class=\"example-amount net\">− USD 10,000<\/span><\/div>\n <div class=\"example-row total\"><span class=\"example-label\">Net US federal tax after FTC<\/span><span class=\"example-amount\">USD 11,000<\/span><\/div>\n <\/div>\n <div class=\"example-footer\">Combined Brazil + US federal tax: USD 21,000 (21% of profit distributed). Note: GILTI and Subpart F may apply to the underlying Brazilian profits before distribution.<\/div>\n <\/div>\n <div class=\"example-box\">\n <div class=\"example-header\"><h4>Example 4: Intercompany interest payment<\/h4><p>USD 100,000 interest paid by Brazilian subsidiary to US parent lender<\/p><\/div>\n <div class=\"example-body\">\n <div class=\"example-row\"><span class=\"example-label\">Interest payment<\/span><span class=\"example-amount\">USD 100,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">IRRF at 15%, withheld from payment<small>Borne by the US lender<\/small><\/span><span class=\"example-amount debit\">− USD 15,000<\/span><\/div>\n <div class=\"example-row subtotal\"><span class=\"example-label\"><strong>Net received by US lender<\/strong><\/span><span class=\"example-amount net\">USD 85,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">US corporate income tax at 21%<small>On USD 100,000 before FTC<\/small><\/span><span class=\"example-amount debit\">USD 21,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">FTC for Brazilian IRRF<small>Subject to FTC limitation rules<\/small><\/span><span class=\"example-amount net\">− USD 15,000<\/span><\/div>\n <div class=\"example-row total\"><span class=\"example-label\">Net US federal tax after FTC<\/span><span class=\"example-amount\">USD 6,000<\/span><\/div>\n <\/div>\n <div class=\"example-footer\">Combined Brazil + US federal tax: USD 21,000 (21% of interest paid). Short-term loans (under 365 days) attract IOF on the foreign exchange leg at 3.5% under Decree 6,306\/2007; loans exceeding 364 days attract IOF at 0%.<\/div>\n <\/div>\n <\/div>\n\n \n <h3 class=\"sub-heading\">Importing physical goods into Brazil<\/h3>\n <p class=\"body-text\">The examples above apply to financial flows and services. Physical goods exported from the United States into Brazil face a separate and cumulative customs and indirect tax regime. Goods imports attract Import Tax (<em>Imposto de Importação<\/em>, <strong>II<\/strong>), the Tax on Industrialised Products (<em>Imposto sobre Produtos Industrializados<\/em>, <strong>IPI<\/strong>), PIS-Import and COFINS-Import at the goods rates (which at 2.1% and 9.65% respectively are higher than the 1.65%\/7.6% service rates), and ICMS, the state-level VAT, calculated on a grossed-up base that includes all other taxes. The United States has no free trade agreement with Brazil, and goods enter under the Mercosur Common External Tariff (<strong>TEC<\/strong>). The combined burden typically adds 40–70% or more to the CIF value depending on the product’s NCM tariff classification and destination state. The example below uses illustrative rates for typical industrial goods; actual rates must be verified by NCM code before importation. For a full breakdown of the Brazilian customs regime, see our <a href=\"https:\/\/www.deqlaw.com.br\/en\/brazil-tax-guide\/\">Brazil Tax Guide<\/a>.<\/p>\n\n <div class=\"example-grid\" style=\"grid-template-columns:1fr;\">\n <div class=\"example-box\">\n <div class=\"example-header\">\n <h4>Example 5: Merchandise import<\/h4>\n <p>USD 100,000 CIF value of industrial goods shipped from the United States to Brazil (illustrative tariff rates)<\/p>\n <\/div>\n <div class=\"example-body\">\n <div class=\"example-row\"><span class=\"example-label\">CIF value (customs value at point of entry)<\/span><span class=\"example-amount\">USD 100,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">Import Tax (II) at 12% of CIF<small>Rate set by NCM tariff code; typically 0%–35%. No US–Brazil FTA; TEC rates apply.<\/small><\/span><span class=\"example-amount debit\">+ USD 12,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">IPI at 5% of (CIF + II = USD 112,000)<small>Tax on industrialised products; varies by product, 0% for many categories.<\/small><\/span><span class=\"example-amount debit\">+ USD 5,600<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">PIS-Import at 2.1% of CIF<small>Goods rate; higher than the 1.65% rate that applies to imported services.<\/small><\/span><span class=\"example-amount debit\">+ USD 2,100<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">COFINS-Import at 9.65% of CIF<small>Goods rate; higher than the 7.6% rate that applies to imported services.<\/small><\/span><span class=\"example-amount debit\">+ USD 9,650<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">ICMS at 18%, tax-inclusive basis (São Paulo)<small>State VAT calculated on a grossed-up base including all other taxes plus the ICMS itself. Rate varies by state (12%–25%) and product.<\/small><\/span><span class=\"example-amount debit\">+ USD 28,394<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">Merchant Marine Renewal Surcharge (<em>Adicional ao Frete para a Renovação da Marinha Mercante<\/em>, <strong>AFRMM<\/strong>) at 25% of sea freight<small>Sea freight imports only; does not apply to air freight. Calculated on the freight component of the CIF value. If sea freight = USD 5,000 (illustrative), AFRMM = USD 1,250. Add to total if goods arrive by sea.<\/small><\/span><span class=\"example-amount debit\">+ USD 1,250 *<\/span><\/div>\n <div class=\"example-row total\"><span class=\"example-label\">Total landed cost (sea freight)<\/span><span class=\"example-amount\">USD 158,994<\/span><\/div>\n <\/div>\n <div class=\"example-footer\">Total Brazilian import taxes (sea freight): approx. USD 58,994 (59.0% of CIF). Without AFRMM (air freight): approx. USD 57,744 (57.7%). * AFRMM assumes sea freight of USD 5,000; actual freight cost varies by weight, volume, route, and Incoterms. Business importers on the Actual Profit regime (Lucro Real) may recover IPI and ICMS credits against output tax on domestic sales; end consumers cannot. ICMS is calculated on a tax-inclusive basis. Rates vary substantially: II from 0% to 35%+ by NCM code; IPI from 0% upward; ICMS from 12% to 25% by state and product category.<\/div>\n <\/div>\n <\/div>\n\n <div class=\"callout\">\n <p><strong>These are simplified illustrations.<\/strong> The actual tax burden on any transaction depends on a range of factors: the correct classification of the payment under Brazilian law, the IOF rate at the time of the currency conversion, the availability and basket limitations of the FTC, state and municipal variations in ISS rates, PIS\/COFINS-Import obligations during the CBS\/IBS transition, and the impact of GILTI, Subpart F, and US state and local taxes on the underlying Brazilian profits. The merchandise import example uses illustrative tariff rates that must be verified against the applicable NCM code. These figures are provided to illustrate the stacking effect, not as a substitute for transaction-specific advice.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section cream\" id=\"us-taxes-brazil\">\n <div class=\"section-inner\">\n <div class=\"section-label\">US tax<\/div>\n <h2 class=\"section-title\">US taxation of Brazil-sourced income<\/h2>\n <p class=\"section-intro\">The United States taxes its citizens and resident aliens on worldwide income, and taxes US corporations on the income of their controlled foreign subsidiaries through the <a href=\"https:\/\/www.irs.gov\/businesses\/corporations\/gilti-resources-for-tax-professionals\">GILTI<\/a> and <a href=\"https:\/\/www.irs.gov\/businesses\/corporations\/subpart-f-income\">Subpart F<\/a> regimes. Brazil-sourced income is within scope.<\/p>\n\n <h3 class=\"sub-heading\">US corporations investing in Brazil<\/h3>\n <p class=\"body-text\">A US corporation that invests in Brazil through a subsidiary will generally recognise Brazilian income for US tax purposes through one of two mechanisms.<\/p>\n <div class=\"info-grid\">\n <div class=\"info-box\">\n <div class=\"info-box-label\">US tax mechanism<\/div>\n <h4>Global Intangible Low-Taxed Income (<strong>GILTI<\/strong>)<\/h4>\n <p>GILTI applies to the net income of controlled foreign corporations (<strong>CFCs<\/strong>) not otherwise captured by Subpart F. Brazilian operating income of a CFC is generally subject to GILTI inclusion in the hands of the US shareholder, subject to a deduction under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/250\">IRC section 250<\/a> and a foreign tax credit.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">US tax mechanism<\/div>\n <h4>Subpart F income<\/h4>\n <p>Certain passive and mobile income (interest, dividends, rents, royalties, and related-party sales income) earned by a Brazilian CFC may constitute Subpart F income, currently includible by the US shareholder regardless of whether profits are repatriated.<\/p>\n <\/div>\n <\/div>\n\n <h3 class=\"sub-heading\">Foreign tax credits<\/h3>\n <p class=\"body-text\">The primary mechanism for avoiding double taxation in the absence of a treaty is the US foreign tax credit (<strong>FTC<\/strong>). A US taxpayer who pays Brazilian income tax (including IRRF) may generally claim a credit against US tax liability for the Brazilian taxes paid, subject to the FTC limitation rules under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/901\">IRC sections 901–909<\/a>. Brazilian contributions such as PIS\/COFINS are generally not creditable as foreign income taxes for US purposes, meaning they represent a true additional cost. By contrast, the 10% IRRF on dividends under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a> should generally qualify as a creditable foreign income tax.<\/p>\n\n <h3 class=\"sub-heading\">Branch profits tax and withholding on US inbound payments<\/h3>\n <p class=\"body-text\">Where a Brazilian company operates in the United States through a branch rather than a subsidiary, the US branch profits tax (currently 30%) applies to after-tax earnings deemed repatriated to the Brazilian head office. The 30% statutory rate applies in full in the absence of a treaty reduction. For payments from US entities to Brazilian recipients, US domestic withholding taxes at 30% may apply on fixed or determinable annual or periodic income.<\/p>\n\n <div class=\"callout\">\n <p><strong>FATCA and the August 2025 Competent Authority Arrangement.<\/strong> Brazilian financial institutions are subject to FATCA under the <a href=\"https:\/\/home.treasury.gov\/system\/files\/131\/FATCA-Agreement-Brazil-3-23-2014.pdf\">intergovernmental agreement<\/a> between Brazil and the United States. On 27 August 2025, the US and Brazil signed a new <a href=\"https:\/\/www.irs.gov\/pub\/irs-lbi\/brazil-caa-spontaneous-eoi.pdf\">Competent Authority Arrangement<\/a> providing for spontaneous and proactive exchange of tax information between the two authorities. This substantially expands the sharing of data between the IRS and the <a href=\"https:\/\/www.gov.br\/receitafederal\/en\">Federal Revenue Department (<em>Receita Federal do Brasil<\/em>)<\/a> beyond what the prior TIEA and FATCA required. Opacity is no longer a practical position for US persons with Brazilian interests, or Brazilian nationals with US financial accounts.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section\" id=\"transfer-pricing\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Transfer pricing<\/div>\n <h2 class=\"section-title\">Transfer pricing: Brazil’s new OECD-aligned rules<\/h2>\n <p class=\"section-intro\">Brazil has historically applied a fixed-margin transfer pricing system that diverged fundamentally from OECD standards. <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2023\/lei\/l14596.htm\">Law 14,596\/2023<\/a> and <a href=\"https:\/\/normas.receita.fazenda.gov.br\/sijut2consulta\/link.action?idAto=127751\">IN RFB 2,161\/2023<\/a> replaced this system with rules aligned with the OECD arm’s-length standard, with full effect from 2024.<\/p>\n\n <h3 class=\"sub-heading\">The new arm’s-length standard<\/h3>\n <p class=\"body-text\">Brazil’s new transfer pricing rules adopt the arm’s-length principle and the OECD Transfer Pricing Guidelines. The main changes for US–Brazil related-party transactions include:<\/p>\n <ul class=\"step-list\">\n <li><span class=\"step-num\">1<\/span><div><strong>Functional and comparability analysis<\/strong> Pricing is determined by reference to a controlled transaction’s functions, assets, and risks, compared against comparable uncontrolled transactions, consistent with the approach under <a href=\"https:\/\/www.law.cornell.edu\/cfr\/text\/26\/1.482\">US Treasury Regulation section 1.482<\/a>.<\/div><\/li>\n <li><span class=\"step-num\">2<\/span><div><strong>Accepted OECD methods<\/strong> The new rules recognise the full suite of OECD-approved methods: CUP, resale price, cost-plus, TNMM, and profit split. The “best method” concept applies.<\/div><\/li>\n <li><span class=\"step-num\">3<\/span><div><strong>Intangibles and intragroup services<\/strong> Rules on hard-to-value intangibles and low-value-adding services follow OECD guidance. The absence of a MAP mechanism to resolve disputes remains a gap.<\/div><\/li>\n <li><span class=\"step-num\">4<\/span><div><strong>Country-by-Country Reporting (CbCR)<\/strong> Brazilian members of multinational groups are required to submit CbCR reports to the <a href=\"https:\/\/www.gov.br\/receitafederal\/en\">Federal Revenue Department (<em>Receita Federal do Brasil<\/em>)<\/a>, which participates in BEPS and exchanges CbCR data with the IRS.<\/div><\/li>\n <\/ul>\n <div class=\"callout\">\n <p><strong>Thin capitalisation.<\/strong> Brazil imposes thin capitalisation rules restricting the deductibility of interest on related-party debt. Where the Brazilian borrower’s related-party debt exceeds a prescribed debt-to-equity ratio, interest deductions are disallowed. These rules interact with the new transfer pricing framework and require careful attention when structuring debt financing between US parents and Brazilian subsidiaries.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section navy-bg\" id=\"individuals\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Individuals<\/div>\n <h2 class=\"section-title\">Individuals: US citizens in Brazil and Brazilian nationals in the United States<\/h2>\n <p class=\"section-intro\">The treatment of individuals crossing between Brazil and the United States is particularly complex in the absence of a treaty, as both countries may assert full tax residence simultaneously.<\/p>\n\n <h3 class=\"sub-heading\">US citizens and Green Card holders in Brazil<\/h3>\n <p class=\"body-text\">The United States taxes its citizens and permanent residents on worldwide income regardless of where they reside. A US citizen living and working in Brazil is therefore subject to Brazilian income tax on Brazil-sourced income and also subject to US income tax on the same income. Three domestic US mechanisms provide partial relief.<\/p>\n <table class=\"rate-table\">\n <thead><tr><th>Relief mechanism<\/th><th>Applicable to<\/th><th>Key limitation<\/th><\/tr><\/thead>\n <tbody>\n <tr>\n <td><strong>Foreign Earned Income Exclusion (<strong>FEIE<\/strong>)<\/strong><br><span style=\"font-size:13px;color:rgba(255,255,255,0.4)\"><a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/911\">IRC § 911<\/a><\/span><\/td>\n <td>US citizens and resident aliens abroad<\/td>\n <td>Limited to employment and self-employment income; investment income is excluded. The 2026 exclusion amount is approximately USD 130,000 (indexed annually for inflation).<\/td>\n <\/tr>\n <tr>\n <td><strong>Foreign Tax Credit (FTC)<\/strong><br><span style=\"font-size:13px;color:rgba(255,255,255,0.4)\"><a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/901\">IRC §§ 901–909<\/a><\/span><\/td>\n <td>US persons paying creditable foreign taxes<\/td>\n <td>Brazilian income tax generally qualifies. The credit is limited to US tax on foreign-source income; excess credits can be carried back one year or forward ten years.<\/td>\n <\/tr>\n <tr>\n <td><strong>Foreign Housing Exclusion\/Deduction<\/strong><\/td>\n <td>US citizens abroad with qualifying housing costs<\/td>\n <td>Supplements the FEIE; limited by the IRS cost-of-living index for São Paulo or the relevant city, determined annually.<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n\n <h3 class=\"sub-heading\">Brazilian tax residents in the United States<\/h3>\n <p class=\"body-text\">A Brazilian national who establishes tax residence in the United States remains subject to Brazilian taxation until the formal <em>Saída Definitiva<\/em> process is completed with the <a href=\"https:\/\/www.gov.br\/receitafederal\/en\">Federal Revenue Department (<em>Receita Federal do Brasil<\/em>)<\/a>. Until this is done, for the first 12 months of residing abroad the individual remains subject to Brazilian income tax on worldwide income, producing genuine double taxation with no treaty mechanism to resolve it. Brazilian residents departing permanently for the United States should take advice on the <em>Saída Definitiva<\/em> process before their departure date.<\/p>\n\n <h3 class=\"sub-heading\">US exit tax<\/h3>\n <p class=\"body-text\">US citizens who renounce their citizenship and long-term permanent residents who relinquish their Green Cards may be subject to the US exit tax under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/877A\">IRC section 877A<\/a> if they meet the relevant net worth or tax liability thresholds. This is an important consideration for Brazilian nationals who have held Green Cards for an extended period and are returning to Brazil.<\/p>\n\n <div class=\"callout\">\n <p><strong>Social security totalisation.<\/strong> Brazil and the United States do not have a social security totalisation agreement. Individuals working in one country for an employer based in the other may therefore be required to contribute to both countries’ social security systems simultaneously. For US employers seconding employees to Brazil, Brazilian National Social Security Contributions (<strong>INSS<\/strong>) apply to Brazilian-payroll employees in addition to any continued US Federal Insurance Contributions Act (<strong>FICA<\/strong>) obligations, increasing total employment cost significantly.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section\" id=\"structuring\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Structuring<\/div>\n <h2 class=\"section-title\">Structuring considerations for US investors in Brazil<\/h2>\n <p class=\"section-intro\">In the absence of a DTA, the holding structure chosen for a US investment in Brazil has a direct and material impact on the overall tax burden. Several considerations merit attention at the planning stage.<\/p>\n\n <h3 class=\"sub-heading\">Holding structure<\/h3>\n <ul class=\"step-list\">\n <li><span class=\"step-num\">•<\/span><div><strong>Direct US holding<\/strong> The simplest structure, but exposes dividend flows to 10% IRRF under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a> and full US taxation, with relief available only through domestic FTC mechanisms. GILTI and Subpart F inclusion rules apply to the Brazilian subsidiary’s income.<\/div><\/li>\n <li><span class=\"step-num\">•<\/span><div><strong>Intermediate DTA-country holding<\/strong> Routing the investment through a jurisdiction that has both a DTA with Brazil and an acceptable tax relationship with the United States can reduce IRRF on outbound flows from Brazil and provide a MAP mechanism for transfer pricing disputes. This must be assessed carefully against Brazil’s beneficial ownership and anti-treaty-shopping rules.<\/div><\/li>\n <li><span class=\"step-num\">•<\/span><div><strong>Brazilian holding (Ltda. or S.A.)<\/strong> Consolidating Brazilian operations under a Brazilian holding company defers the 10% IRRF on dividends, which applies only on remittances abroad under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a>, not on distributions between Brazilian entities. The foreign investment must be registered with the <a href=\"https:\/\/www.bcb.gov.br\/en\" class=\"ref-link\">Central Bank of Brazil<\/a>.<\/div><\/li>\n <\/ul>\n\n <h3 class=\"sub-heading\">Debt vs equity financing<\/h3>\n <p class=\"body-text\">Interest on qualifying debt is deductible at the Brazilian level, but IRRF at 15% applies on the outbound payment to the US lender. JCP payments are deductible but attract 17.5% IRRF under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/leis\/lcp\/lcp224.htm\">Complementary Law 224\/2025<\/a>. Dividends attract 10% IRRF under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a>. The interaction between Brazil’s thin capitalisation rules and the arm’s-length pricing of intercompany loans requires specific attention.<\/p>\n\n <h3 class=\"sub-heading\">Capital gains planning<\/h3>\n <p class=\"body-text\">On a disposal of Brazilian assets, non-resident sellers are subject to IRRF on capital gains at rates of 15% to 22.5%, depending on the gain amount. The US seller will also recognise a capital gain for US purposes, with relief available only through the FTC mechanism. The timing and structuring of a disposal can affect the Brazilian tax characterisation and the crediting position in the United States.<\/p>\n\n <hr class=\"rule\">\n\n <h3 class=\"sub-heading\">Key takeaways for US investors<\/h3>\n <div class=\"info-grid\">\n <div class=\"info-box\">\n <div class=\"info-box-label\">Planning point<\/div>\n <h4>Structure early<\/h4>\n <p>The holding structure decision should be made before the investment is established. Restructuring after the fact can trigger Brazilian tax events and complicate the Central Bank of Brazil registration.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Planning point<\/div>\n <h4>Register the investment with the Central Bank of Brazil<\/h4>\n <p>Foreign direct investment in Brazil must be registered with the <a href=\"https:\/\/www.bcb.gov.br\/en\" class=\"ref-link\">Central Bank of Brazil<\/a>. Correct registration is a precondition for the repatriation of capital and the remittance of profits.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Planning point<\/div>\n <h4>Review FTC eligibility for dividend IRRF<\/h4>\n <p>The 10% IRRF on dividends under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a> should generally qualify as a creditable foreign income tax. US shareholders should confirm their FTC position and model the net cost of repatriation under current rates.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Planning point<\/div>\n <h4>Coordinate US and Brazilian advisers<\/h4>\n <p>In the absence of a DTA, the interaction between US and Brazilian tax rules requires coordinated legal and tax advice in both jurisdictions. My law firm works alongside US tax counsel on cross-border mandates.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/section>\n\n\n<div class=\"warning-strip\">\n <div class=\"warning-inner\">\n <div class=\"warning-icon\">⚠<\/div>\n <p>This guide is a general overview only and does not constitute legal or tax advice. Tax laws in both countries change frequently, including legislative reforms currently in progress, and the information in this guide reflects the position as understood at the time of publication. The specific tax treatment of any transaction depends on the facts, the structure adopted, and the current state of the law in each jurisdiction. Obtain specific legal and tax advice before structuring any cross-border transaction.<\/p>\n <\/div>\n<\/div>\n\n\n<section class=\"cta-section\">\n <div class=\"cta-inner\">\n <div class=\"section-label\">Get advice<\/div>\n <h2>Need advice on your US–Brazil tax structure?<\/h2>\n <p>This guide provides general information only. The interaction of US and Brazilian tax rules in the absence of a DTA requires careful, transaction-specific analysis. Contact us to discuss your situation.<\/p>\n <div class=\"cta-contact-box\">\n <div class=\"box-label\">Contact us<\/div>\n <a href=\"mailto:info@deqlaw.com.br\" class=\"email\">info@deqlaw.com.br<\/a>\n <a href=\"mailto:info@deqlaw.com.br\" class=\"btn-primary\">Send Email Now<\/a>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"disclaimer-section\">\n <div class=\"disclaimer-inner\">\n <p>This guide is prepared by <a href=\"https:\/\/www.deqlaw.com.br\">D&Q Lawyers<\/a> for general informational purposes only. It does not constitute legal or tax advice and should not be relied upon as such. Tax rates, legislation, and regulatory requirements are subject to change. Readers should obtain specific advice before taking any action in reliance on this material. © D&Q Lawyers.<\/p>\n <\/div>\n<\/section>\n\n<\/div>\n<\/body>\n<\/html><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":6,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-6014","page","type-page","status-publish","hentry"],"yoast_head":"\n<title>Brazil-United States Tax Guide - D&Q Lawyers<\/title>\n<meta name=\"description\" content=\"A practical guide to the tax rules affecting companies, investors, and individuals operating between Brazil and the United States.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Brazil-United States Tax Guide - D&Q Lawyers\" \/>\n<meta property=\"og:description\" content=\"A practical guide to the tax rules affecting companies, investors, and individuals operating between Brazil and the United States.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/\" \/>\n<meta property=\"og:site_name\" content=\"D&Q Lawyers\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-11T23:43:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/deqlaw.com.br\/wp-content\/uploads\/2023\/12\/favicondeq2-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"512\" \/>\n\t<meta property=\"og:image:height\" content=\"512\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"32 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/brazil-united-states-tax-guide\\\/\",\"url\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/brazil-united-states-tax-guide\\\/\",\"name\":\"Brazil-United States Tax Guide - D&Q Lawyers\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/#website\"},\"datePublished\":\"2026-04-09T02:13:07+00:00\",\"dateModified\":\"2026-04-11T23:43:18+00:00\",\"description\":\"A practical guide to the tax rules affecting companies, investors, and individuals operating between Brazil and the United States.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/brazil-united-states-tax-guide\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/brazil-united-states-tax-guide\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/brazil-united-states-tax-guide\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Brazil-United States Tax Guide\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/\",\"name\":\"D&Q Lawyers\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n","yoast_head_json":{"title":"Brazil-United States Tax Guide - D&Q Lawyers","description":"A practical guide to the tax rules affecting companies, investors, and individuals operating between Brazil and the United States.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/","og_locale":"en_US","og_type":"article","og_title":"Brazil-United States Tax Guide - D&Q Lawyers","og_description":"A practical guide to the tax rules affecting companies, investors, and individuals operating between Brazil and the United States.","og_url":"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/","og_site_name":"D&Q Lawyers","article_modified_time":"2026-04-11T23:43:18+00:00","og_image":[{"width":512,"height":512,"url":"https:\/\/deqlaw.com.br\/wp-content\/uploads\/2023\/12\/favicondeq2-1.png","type":"image\/png"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"32 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/","url":"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/","name":"Brazil-United States Tax Guide - D&Q Lawyers","isPartOf":{"@id":"https:\/\/deqlaw.com.br\/en\/#website"},"datePublished":"2026-04-09T02:13:07+00:00","dateModified":"2026-04-11T23:43:18+00:00","description":"A practical guide to the tax rules affecting companies, investors, and individuals operating between Brazil and the United States.","breadcrumb":{"@id":"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/deqlaw.com.br\/en\/"},{"@type":"ListItem","position":2,"name":"Brazil-United States Tax Guide"}]},{"@type":"WebSite","@id":"https:\/\/deqlaw.com.br\/en\/#website","url":"https:\/\/deqlaw.com.br\/en\/","name":"D&Q Lawyers","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/deqlaw.com.br\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/pages\/6014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/comments?post=6014"}],"version-history":[{"count":9,"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/pages\/6014\/revisions"}],"predecessor-version":[{"id":6055,"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/pages\/6014\/revisions\/6055"}],"wp:attachment":[{"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/media?parent=6014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

\n\n\n\n\nBrazil-United States Tax Guide - D&Q Lawyers<\/title>\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Lato:ital,wght@0,100;0,300;0,400;0,700;0,900;1,100;1,300;1,400&display=swap\" rel=\"stylesheet\" \/>\n<style>\n .dq-page-wrap{margin-left:calc(-50vw + 50%);margin-right:calc(-50vw + 50%);width:100vw;max-width:100vw;overflow-x:hidden;}\n :root{--navy:#0d1b2a;--navy-mid:#1a2e45;--gold:#cb8569;--gold-light:#e09a7e;--cream:#f8f5f0;--warm-white:#fdfcfa;--text-dark:#1a1a1a;--text-mid:#4a4a4a;--text-light:#7a7a7a;--border:#e0d8cc;}\n *,*::before,*::after{box-sizing:border-box;margin:0;padding:0;}\n html{scroll-behavior:smooth;}\n body{font-family:'Lato',sans-serif;background:var(--warm-white);color:var(--text-dark);line-height:1.7;font-weight:400;}\n .hero{background:var(--navy);color:white;padding:100px 40px 90px;position:relative;overflow:hidden;}\n .hero::after{content:'';position:absolute;bottom:0;left:0;right:0;height:3px;background:linear-gradient(90deg,transparent,var(--gold),transparent);}\n .hero-inner{max-width:860px;margin:0 auto;position:relative;z-index:1;}\n .hero-label{font-size:12px;letter-spacing:3px;text-transform:uppercase;color:var(--gold-light);margin-bottom:28px;display:flex;align-items:center;gap:14px;}\n .hero h1{font-size:clamp(30px,4.5vw,52px);font-weight:300;line-height:1.15;margin-bottom:28px;}\n .hero h1 em{font-style:italic;color:var(--gold-light);}\n .hero-sub{font-size:20px;color:rgba(255,255,255,0.72);max-width:640px;line-height:1.8;margin-bottom:20px;font-weight:300;}\n .hero-meta{font-size:13px;color:rgba(255,255,255,0.42);margin-bottom:44px;letter-spacing:0.5px;}\n .btn-primary{display:inline-block;background:var(--gold)!important;color:#ffffff!important;text-decoration:none;padding:15px 38px;font-size:14px;font-weight:500;letter-spacing:1.5px;text-transform:uppercase;transition:background 0.3s;}\n .btn-primary:hover{background:var(--gold-light)!important;color:#ffffff!important;}\n .intro-strip{background:var(--cream);padding:70px 40px;border-bottom:1px solid var(--border);}\n .intro-inner{max-width:860px;margin:0 auto;}\n .intro-inner h2{font-size:30px;font-weight:300;color:var(--navy);line-height:1.3;margin-bottom:28px;}\n .intro-cols{display:grid;grid-template-columns:1fr 1fr;gap:48px;margin-bottom:36px;}\n .intro-col p{font-size:16px;color:var(--text-mid);line-height:1.85;}\n .intro-col a{color:var(--gold);text-decoration:none;}\n .intro-col a:hover{text-decoration:underline;}\n .intro-jumps{display:flex;flex-wrap:wrap;gap:10px;padding-top:28px;border-top:1px solid var(--border);}\n .intro-jump{display:inline-flex;align-items:center;gap:6px;font-size:12px;font-weight:700;letter-spacing:1.5px;text-transform:uppercase;color:var(--navy);text-decoration:none;padding:8px 16px;border:1px solid var(--border);background:var(--warm-white);transition:border-color .2s,color .2s;}\n .intro-jump::before{content:'\\2193';color:var(--gold);font-size:13px;}\n .intro-jump:hover{border-color:var(--gold);color:var(--gold);}\n .content-section{padding:60px 40px;background:var(--warm-white);}\n .content-section.cream{background:var(--cream);}\n .content-section.navy-bg{background:var(--navy);}\n .section-inner{max-width:860px;margin:0 auto;}\n .section-label{font-size:12px;letter-spacing:3px;text-transform:uppercase;color:var(--gold);margin-bottom:18px;display:flex;align-items:center;gap:14px;}\n .content-section.navy-bg .section-label{color:var(--gold-light);}\n .section-title{font-size:34px;font-weight:300;color:var(--navy);margin-bottom:32px;line-height:1.2;}\n .content-section.navy-bg .section-title{color:white;}\n .section-intro{font-size:16px;color:var(--text-mid);line-height:1.85;margin-bottom:36px;}\n .content-section.navy-bg .section-intro{color:rgba(255,255,255,0.65);}\n .body-text{font-size:16px;color:var(--text-mid);line-height:1.9;margin-bottom:22px;}\n .body-text a{color:var(--gold);text-decoration:none;}\n .body-text a:hover{text-decoration:underline;}\n .content-section.navy-bg .body-text{color:rgba(255,255,255,0.65);}\n .sub-heading{font-size:20px;font-weight:700;color:var(--navy);margin:36px 0 14px;line-height:1.3;}\n .content-section.navy-bg .sub-heading{color:var(--gold-light);}\n .rate-table{width:100%;border-collapse:collapse;margin:28px 0 36px;font-size:15px;}\n .rate-table thead th{background:var(--navy);color:white;padding:12px 16px;text-align:left;font-size:12px;font-weight:700;letter-spacing:1.5px;text-transform:uppercase;}\n .content-section.navy-bg .rate-table thead th{background:rgba(255,255,255,0.12);}\n .rate-table tbody tr{border-bottom:1px solid var(--border);}\n .content-section.navy-bg .rate-table tbody tr{border-bottom:1px solid rgba(255,255,255,0.1);}\n .rate-table tbody tr:last-child{border-bottom:none;}\n .rate-table tbody td{padding:13px 16px;color:var(--text-mid);vertical-align:top;}\n .content-section.navy-bg .rate-table tbody td{color:rgba(255,255,255,0.65);background:rgba(255,255,255,0.03);}\n .rate-table tbody tr:nth-child(even) td{background:var(--cream);}\n .content-section.navy-bg .rate-table tbody tr:nth-child(even) td{background:rgba(255,255,255,0.05);}\n .rate-badge{display:inline-block;font-weight:700;color:var(--navy);font-size:15px;}\n .content-section.navy-bg .rate-badge{color:var(--gold-light);}\n .rate-note{font-size:13px;color:var(--text-light);display:block;margin-top:3px;}\n .info-grid{display:grid;grid-template-columns:1fr 1fr;gap:2px;background:var(--border);margin:32px 0;}\n .content-section.navy-bg .info-grid{background:rgba(255,255,255,0.1);}\n .info-box{background:var(--warm-white);padding:28px;}\n .content-section.cream .info-box{background:var(--warm-white);}\n .content-section.navy-bg .info-box{background:var(--navy-mid);}\n .info-box-label{font-size:11px;letter-spacing:2px;text-transform:uppercase;color:var(--gold);margin-bottom:10px;font-weight:700;}\n .info-box h4{font-size:17px;font-weight:700;color:var(--navy);margin-bottom:10px;line-height:1.3;}\n .content-section.navy-bg .info-box h4{color:var(--gold-light);}\n .info-box p{font-size:15px;color:var(--text-mid);line-height:1.8;}\n .content-section.navy-bg .info-box p{color:rgba(255,255,255,0.6);}\n .callout{background:var(--cream);border-left:3px solid var(--gold);padding:24px 28px;margin:28px 0;}\n .content-section.cream .callout{background:var(--warm-white);}\n .content-section.navy-bg .callout{background:rgba(203,133,105,0.12);border-left-color:var(--gold-light);}\n .callout p{font-size:15px;color:var(--text-mid);line-height:1.8;margin:0 0 10px;}\n .callout p:last-child{margin-bottom:0;}\n .content-section.navy-bg .callout p{color:rgba(255,255,255,0.65);}\n .callout strong{color:var(--navy);}\n .content-section.navy-bg .callout strong{color:var(--gold-light);}\n .callout a{color:var(--gold);font-weight:700;text-decoration:none;}\n .callout a:hover{text-decoration:underline;}\n .example-grid{display:grid;grid-template-columns:1fr 1fr;gap:24px;margin:32px 0;}\n .example-box{border:1px solid var(--border);}\n .example-header{background:var(--navy);padding:16px 20px;}\n .example-header h4{font-size:13px;font-weight:700;letter-spacing:1px;text-transform:uppercase;color:var(--gold-light);margin-bottom:3px;}\n .example-header p{font-size:12px;color:rgba(255,255,255,0.5);margin:0;}\n .example-body{padding:18px 20px;background:var(--warm-white);}\n .content-section.cream .example-body{background:var(--cream);}\n .example-row{display:flex;justify-content:space-between;align-items:baseline;padding:8px 0;border-bottom:1px solid var(--border);font-size:14px;gap:12px;}\n .example-row:last-child{border-bottom:none;}\n .example-row.subtotal{border-top:1px solid var(--navy);border-bottom:1px solid var(--border);padding-top:10px;}\n .example-row.total{font-weight:700;border-top:2px solid var(--navy);border-bottom:none;padding-top:12px;margin-top:2px;}\n .example-label{color:var(--text-mid);line-height:1.5;}\n .example-label small{font-size:12px;color:var(--text-light);display:block;}\n .example-amount{font-weight:700;color:var(--navy);white-space:nowrap;}\n .example-amount.debit{color:#b03030;}\n .example-amount.net{color:#2a6e35;}\n .example-footer{padding:10px 20px;background:var(--cream);border-top:1px solid var(--border);font-size:13px;color:var(--text-light);}\n .step-list{list-style:none;margin:20px 0 28px;}\n .step-list li{display:flex;gap:18px;padding:16px 0;border-bottom:1px solid var(--border);font-size:15px;color:var(--text-mid);line-height:1.75;}\n .content-section.navy-bg .step-list li{border-bottom-color:rgba(255,255,255,0.08);color:rgba(255,255,255,0.65);}\n .step-list li:last-child{border-bottom:none;}\n .step-num{font-size:20px;font-weight:900;color:var(--gold);flex-shrink:0;min-width:28px;line-height:1.2;}\n .step-list li strong{color:var(--navy);display:block;margin-bottom:4px;font-size:15px;}\n .content-section.navy-bg .step-list li strong{color:rgba(255,255,255,0.9);}\n .rule{border:none;border-top:1px solid var(--border);margin:40px 0;}\n .disclaimer-section{padding:40px;background:var(--navy);border-top:1px solid rgba(255,255,255,0.08);}\n .disclaimer-inner{max-width:860px;margin:0 auto;}\n .disclaimer-inner p{font-size:13px;color:rgba(255,255,255,0.38);line-height:1.8;}\n .disclaimer-inner a{color:rgba(255,255,255,0.5);text-decoration:none;}\n .cta-section{padding:90px 40px;background:var(--cream);border-top:1px solid var(--border);}\n .cta-inner{max-width:680px;margin:0 auto;text-align:center;}\n .cta-inner .section-label{justify-content:center;}\n .cta-inner h2{font-size:34px;font-weight:300;color:var(--navy);margin-bottom:20px;line-height:1.2;}\n .cta-inner>p{font-size:17px;color:var(--text-mid);margin-bottom:40px;line-height:1.85;}\n .cta-contact-box{margin-top:20px;padding:36px 44px;background:var(--warm-white);border:1px solid var(--border);display:inline-block;min-width:320px;}\n .cta-contact-box .box-label{font-size:12px;text-transform:uppercase;letter-spacing:2px;color:var(--text-light);margin-bottom:12px;}\n .cta-contact-box a.email{font-size:22px;font-weight:300;color:var(--navy);text-decoration:none;display:block;margin-bottom:16px;}\n @media(max-width:760px){\n .country-banner{padding:0 24px;}\n .country-banner-inner{grid-template-columns:1fr;}\n .cb-divider{display:none;}\n .cb-side,.cb-side:last-child{padding:36px 0;}\n .cb-side:last-child{border-top:1px solid var(--border);}\n .guide-banner-inner{flex-direction:column;padding:32px 24px;gap:24px;align-items:flex-start;}\n .hero{padding:70px 24px 64px;}\n .intro-cols,.info-grid,.example-grid{grid-template-columns:1fr;}\n .content-section{padding:60px 24px;}\n .intro-strip{padding:50px 24px;}\n .cta-section{padding:60px 24px;}\n .cta-contact-box{padding:28px 24px;min-width:0;width:100%;}\n .rate-table{font-size:14px;}\n .rate-table tbody td,.rate-table thead th{padding:10px 12px;}\n }\n .country-banner{background:var(--cream);border-bottom:1px solid var(--border);padding:0 40px;}\n .country-banner-inner{max-width:860px;margin:0 auto;display:grid;grid-template-columns:1fr 1px 1fr;}\n .cb-divider{background:var(--border);align-self:stretch;margin:48px 0;}\n .cb-side{padding:48px 48px 48px 0;}\n .cb-side:last-child{padding:48px 0 48px 48px;}\n .cb-flag{font-size:36px;margin-bottom:16px;line-height:1;}\n .cb-country{font-size:11px;letter-spacing:3px;text-transform:uppercase;color:var(--gold);margin-bottom:20px;display:flex;align-items:center;gap:10px;}\n .cb-country::before{content:'';display:block;width:20px;height:1px;background:var(--gold);}\n .cb-stats{display:flex;flex-direction:column;gap:14px;}\n .cb-stat{display:flex;justify-content:space-between;align-items:baseline;border-bottom:1px solid var(--border);padding-bottom:10px;gap:20px;}\n .cb-stat:last-child{border-bottom:none;padding-bottom:0;}\n .cb-stat-label{font-size:13px;color:var(--text-light);}\n .cb-stat-value{font-size:14px;font-weight:700;color:var(--navy);text-align:right;}\n .guide-banner{background:var(--navy-mid);border-top:3px solid var(--gold);}\n .guide-banner-inner{max-width:860px;margin:0 auto;padding:44px 40px;display:flex;justify-content:space-between;align-items:center;gap:40px;}\n .guide-banner-text .guide-banner-label{font-size:11px;letter-spacing:2px;text-transform:uppercase;color:var(--gold-light);margin-bottom:10px;}\n .guide-banner-text h3{font-size:22px;font-weight:300;color:white;margin-bottom:8px;line-height:1.3;}\n .guide-banner-text p{font-size:14px;color:rgba(255,255,255,0.6);line-height:1.75;max-width:440px;}\n .guide-banner a.btn-guide{display:inline-block;border:1px solid var(--gold);color:var(--gold-light)!important;text-decoration:none;padding:13px 32px;font-size:13px;font-weight:500;letter-spacing:1.5px;text-transform:uppercase;transition:background .3s,color .3s;white-space:nowrap;}\n .guide-banner a.btn-guide:hover{background:var(--gold);color:#fff!important;}\n \/* CHECKLIST *\/\n .checklist-section{background:var(--navy);padding:90px 40px;color:white;}\n .checklist-section .section-label{color:var(--gold-light);}\n .checklist-section .section-title{color:white;font-weight:300;margin-bottom:16px;}\n .checklist-intro{color:rgba(255,255,255,0.65);font-size:16px;margin-bottom:32px;line-height:1.8;}\n .checklist-grid{display:grid;grid-template-columns:1fr 1fr;gap:2px;background:rgba(255,255,255,0.08);}\n .checklist-item{background:var(--navy-mid);padding:32px 36px;display:flex;gap:22px;align-items:flex-start;transition:background .25s;}\n .checklist-item:hover{background:#213349;}\n .ci-number{font-size:26px;color:var(--gold);font-weight:700;line-height:1;flex-shrink:0;width:30px;margin-top:2px;}\n .ci-content h4{font-weight:700;font-size:18px;color:white;margin-bottom:8px;line-height:1.4;}\n .ci-content p{font-size:15px;color:rgba(255,255,255,0.55);line-height:1.75;}\n .checklist-note{margin-top:44px;border-left:2px solid var(--gold);padding:20px 28px;background:rgba(203,133,105,0.08);color:rgba(255,255,255,0.72);font-size:17px;line-height:1.8;font-style:italic;}\n .warning-strip{background:var(--navy-mid);padding:32px 40px;}\n .warning-inner{max-width:860px;margin:0 auto;display:flex;gap:24px;align-items:flex-start;}\n .warning-icon{color:var(--gold);font-size:22px;flex-shrink:0;margin-top:2px;}\n .warning-inner p{font-size:15px;color:rgba(255,255,255,0.72);line-height:1.8;}\n<\/style>\n<\/head>\n<body>\n<div class=\"dq-page-wrap\">\n\n\n<section class=\"hero\">\n <div class=\"hero-inner\">\n <div class=\"hero-label\">D&Q Lawyers · Cross-Border Tax Guides<\/div>\n <h1>Brazil–United States<br><em>Tax Guide<\/em><\/h1>\n <p class=\"hero-sub\">A practical guide to the tax framework governing transactions, investments, and individuals operating between Brazil and the United States.<\/p>\n <a href=\"mailto:info@deqlaw.com.br\" class=\"btn-primary\">Contact Us<\/a>\n <\/div>\n<\/section>\n\n\n<section class=\"country-banner\">\n <div class=\"country-banner-inner\">\n <div class=\"cb-side\">\n <div class=\"cb-flag\">🇺🇸<\/div>\n <div class=\"cb-country\">United States<\/div>\n <div class=\"cb-stats\">\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">Corporate tax rate<\/span><span class=\"cb-stat-value\">21%<\/span><\/div>\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">Double tax agreement with Brazil<\/span><span class=\"cb-stat-value\">None in force<\/span><\/div>\n <\/div>\n <\/div>\n <div class=\"cb-divider\"><\/div>\n <div class=\"cb-side\">\n <div class=\"cb-flag\">🇧🇷<\/div>\n <div class=\"cb-country\">Brazil<\/div>\n <div class=\"cb-stats\">\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">Corporate tax rate (IRPJ + CSLL)<\/span><span class=\"cb-stat-value\">34% headline \/ often lower<\/span><\/div>\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">WHT on dividends (IRRF, Law 15,270\/2025)<\/span><span class=\"cb-stat-value\">10%<\/span><\/div>\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">WHT on interest (IRRF)<\/span><span class=\"cb-stat-value\">15% \/ 25%<\/span><\/div>\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">WHT on royalties (IRRF + CIDE)<\/span><span class=\"cb-stat-value\">up to 25%<\/span><\/div>\n <div class=\"cb-stat\"><span class=\"cb-stat-label\">Double tax agreement with the US<\/span><span class=\"cb-stat-value\">None in force<\/span><\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"guide-banner\">\n <div class=\"guide-banner-inner\">\n <div class=\"guide-banner-text\">\n <div class=\"guide-banner-label\">D&Q Lawyers · Resource<\/div>\n <h3>New to doing business in Brazil? Start with the full guide.<\/h3>\n <p>Our Brazil Tax Guide covers the complete Brazilian tax system: corporate taxes, indirect taxes, employment taxes, the tax reform transition, and the key obligations for foreign investors.<\/p>\n <\/div>\n <a href=\"https:\/\/www.deqlaw.com.br\/en\/brazil-tax-guide\/\" class=\"btn-guide\">Brazil Tax Guide<\/a>\n <\/div>\n<\/section>\n\n\n<section class=\"intro-strip\">\n <div class=\"intro-inner\">\n <h2>The Brazil–US tax relationship in the absence of a treaty.<\/h2>\n <div class=\"intro-cols\">\n <div class=\"intro-col\">\n <p>The United States and Brazil are two of the largest economies in the Western Hemisphere, yet they remain without a bilateral tax treaty. This gap creates significant complexity for investors, companies, and individuals with interests in both countries, requiring reliance on unilateral relief mechanisms under the domestic law of each jurisdiction.<\/p>\n <\/div>\n <div class=\"intro-col\">\n <p>This guide covers Brazilian withholding income taxes on outbound payments, how those taxes stack on a single transaction, US taxation of Brazil-sourced income, transfer pricing, the treatment of individuals, and key structuring considerations. For advice specific to your situation, <a href=\"mailto:info@deqlaw.com.br\">contact us<\/a>.<\/p>\n <\/div>\n <\/div>\n <div class=\"intro-jumps\">\n <a href=\"#no-dta\" class=\"intro-jump\">No DTA: implications<\/a>\n <a href=\"#key-issues\" class=\"intro-jump\">Key tax issues<\/a>\n <a href=\"#brazil-taxes-outbound\" class=\"intro-jump\">Withholding income taxes<\/a>\n <a href=\"#brazil-tax-regimes\" class=\"intro-jump\">Brazilian tax regimes<\/a>\n <a href=\"#tax-stacking\" class=\"intro-jump\">How taxes stack up<\/a>\n <a href=\"#us-taxes-brazil\" class=\"intro-jump\">US taxation of Brazilian income<\/a>\n <a href=\"#transfer-pricing\" class=\"intro-jump\">Transfer pricing<\/a>\n <a href=\"#individuals\" class=\"intro-jump\">Individuals<\/a>\n <a href=\"#structuring\" class=\"intro-jump\">Structuring considerations<\/a>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section\" id=\"no-dta\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Background<\/div>\n <h2 class=\"section-title\">Having no DTA does not mean being double-taxed, but it does mean paying more attention.<\/h2>\n <p class=\"section-intro\">The United States and Brazil are two of the largest economies in the Western Hemisphere, yet they have never concluded a bilateral tax treaty. Negotiations began in the 1990s but stalled over structural differences between Brazil’s hybrid treaty model and the US Model Income Tax Convention. The absence of a treaty is a practical reality that most participants in this bilateral relationship navigate successfully, but it requires proactive structuring and a clear understanding of both countries’ domestic rules.<\/p>\n <p class=\"body-text\">The foreign tax credit (<strong>FTC<\/strong>) under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/901\">IRC sections 901–909<\/a> is the primary mechanism for avoiding double taxation on Brazil–US income flows. In most well-structured arrangements, Brazilian taxes paid, including the 10% dividend withholding tax under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a> and the 15% IRRF on interest and royalties, are creditable against US federal income tax, producing a combined burden that generally does not exceed the higher of the two countries’ rates. The more significant constraints are the absence of a mutual agreement procedure for resolving transfer pricing disputes, and the overlay of US GILTI and Subpart F rules, which capture certain Brazilian profits before distribution and have no equivalent in most DTA jurisdictions.<\/p>\n\n <div class=\"info-grid\">\n <div class=\"info-box\">\n <div class=\"info-box-label\">Practical consequence<\/div>\n <h4>Full statutory rates apply; FTC under IRC 901–909 provides relief<\/h4>\n <p>Brazilian IRRF and US withholding taxes (30% on dividends and royalties paid to non-residents) apply at full statutory rates with no treaty reduction. The US FTC generally allows Brazilian taxes to offset US federal income tax on the same income, subject to the FTC limitation and separate basket rules under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/904\">IRC section 904<\/a>.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Practical consequence<\/div>\n <h4>GILTI and Subpart F apply to Brazilian CFCs<\/h4>\n <p>US corporations with Brazilian controlled foreign corporations (<strong>CFCs<\/strong>) are subject to GILTI and Subpart F rules that may bring Brazilian profits into US taxable income before any distribution is made. These regimes have no equivalent in most DTA jurisdictions and require modelling independently of the withholding tax analysis.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Practical consequence<\/div>\n <h4>No MAP: transfer pricing disputes resolved domestically<\/h4>\n <p>Both countries apply OECD arm’s-length transfer pricing rules, but the absence of a mutual agreement procedure (<strong>MAP<\/strong>) means that if both the <a href=\"https:\/\/www.gov.br\/receitafederal\/en\">Federal Revenue Department<\/a> and the IRS adjust the same transaction in different directions, the resulting double taxation must be resolved through domestic proceedings. Only unilateral APAs are available.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Practical consequence<\/div>\n <h4>Information exchange is extensive regardless of treaty status<\/h4>\n <p>Brazil and the United States exchange financial account data under FATCA, participate in the OECD Common Reporting Standard (<strong>CRS<\/strong>), and since August 2025 exchange information spontaneously under a new Competent Authority Arrangement. The absence of a DTA does not reduce the visibility of cross-border structures to either tax authority.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"callout\">\n <p><strong>Treaty negotiations.<\/strong> Renewed interest in a Brazil–US DTA is reported periodically. As of the date of this guide, no treaty is in force or at an advanced stage of ratification. Businesses should plan on the basis that the current no-treaty position will continue for the foreseeable future and monitor legislative developments in both countries.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"checklist-section\" id=\"key-issues\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Key Tax Issues<\/div>\n <h2 class=\"section-title\">The main taxes that affect cross-border operations<\/h2>\n <p class=\"checklist-intro\">The following taxes arise in virtually every substantive business relationship between US and Brazilian entities. Each operates independently; satisfying one obligation does not reduce or eliminate any other.<\/p>\n <div class=\"checklist-grid\">\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">01<\/div>\n <div class=\"ci-content\">\n <h4>Brazilian corporate income tax: IRPJ and CSLL<\/h4>\n <p>Brazilian companies are subject to Corporate Income Tax (<em>Imposto de Renda das Pessoas Jurídicas<\/em>, <strong>IRPJ<\/strong>) at 15%, with a 10% surtax on annual taxable income exceeding R$240,000, and Social Contribution on Net Income (<em>Contribuição Social sobre o Lucro Líquido<\/em>, <strong>CSLL<\/strong>) at 9% for most companies. The combined standard rate under the Actual Profit regime is effectively <strong>34%<\/strong>. Many companies qualify for the Deemed Profit regime and pay considerably less, which also affects GILTI and Pillar Two analysis for US parents.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">02<\/div>\n <div class=\"ci-content\">\n <h4>US federal corporate income tax, GILTI and Subpart F<\/h4>\n <p>US resident companies pay federal corporate tax at <strong>21%<\/strong> on worldwide income. US corporations with Brazilian controlled foreign corporations (<strong>CFCs<\/strong>) are also subject to the Global Intangible Low-Taxed Income (<strong>GILTI<\/strong>) and Subpart F regimes under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/951\" class=\"ref-link-light\">IRC sections 951–965<\/a>, which may bring Brazilian profits into US taxable income before any distribution is made, independent of the withholding tax analysis.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">03<\/div>\n <div class=\"ci-content\">\n <h4>Brazilian withholding income tax (IRRF) on outbound payments<\/h4>\n <p>Brazil imposes Withholding Income Tax (<em>Imposto de Renda Retido na Fonte<\/em>, <strong>IRRF<\/strong>) on payments to non-residents. Key rates: dividends <strong>10%<\/strong> (<a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\" class=\"ref-link-light\">Law 15,270\/2025<\/a>); interest <strong>15%<\/strong> (rising to 25% for low-tax jurisdictions; some passive US holding structures may qualify); royalties and technical services <strong>15%<\/strong>; general services <strong>25%<\/strong>. With no DTA, US recipients cannot reduce these rates.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">04<\/div>\n <div class=\"ci-content\">\n <h4>Transfer pricing: dual compliance obligations<\/h4>\n <p>Both countries apply OECD arm’s-length transfer pricing rules. Brazil’s regime was reformed by <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2023\/lei\/l14596.htm\" class=\"ref-link-light\">Law 14,596\/2023<\/a>. The United States applies rules under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/482\" class=\"ref-link-light\">IRC section 482<\/a> and Treasury Regulation section 1.482. Related-party transactions must independently satisfy both regimes. Without a mutual agreement procedure (<strong>MAP<\/strong>), disputes cannot be resolved bilaterally and only unilateral APAs are available.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">05<\/div>\n <div class=\"ci-content\">\n <h4>Brazilian indirect taxes: PIS, COFINS, ICMS and ISS<\/h4>\n <p>Brazilian businesses face a layered indirect tax burden: <strong>PIS<\/strong> (0.65–1.65%) and <strong>COFINS<\/strong> (3–7.6%) on gross revenue; <strong>ICMS<\/strong> (state VAT, typically 12–18%) on goods; and <strong>ISS<\/strong> (municipal services tax, 2–5%) on services. Cross-border service payments from Brazil to US providers attract PIS\/COFINS-Import on the Brazilian side. These are not creditable as foreign income taxes under US rules and represent a real cost to the structure.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">06<\/div>\n <div class=\"ci-content\">\n <h4>US branch profits tax and state and local taxes<\/h4>\n <p>A Brazilian company operating in the United States through a branch is subject to the US branch profits tax at <strong>30%<\/strong> on after-tax earnings deemed repatriated to the Brazilian head office, without treaty reduction. US state and local income taxes add a further layer of tax not reduced by any Brazil–US bilateral instrument. Combined federal and state effective rates for US-sourced income can reach 25–30% or more depending on the state.<\/p>\n <\/div>\n <\/div>\n\n <div class=\"checklist-item\">\n <div class=\"ci-number\">07<\/div>\n <div class=\"ci-content\">\n <h4>IOF: Brazil’s financial transactions tax<\/h4>\n <p>Brazil’s Tax on Financial Transactions (<em>Imposto sobre Operações Financeiras<\/em>, <strong>IOF<\/strong>) applies to foreign exchange transactions, credit operations and insurance. Cross-border loan transactions attract IOF on the foreign exchange leg. IOF on loan proceeds was reduced to 0% for loans exceeding 180 days following a 2022 reform. Short-term funding arrangements and capital contributions in cash attract IOF at varying rates.<\/p>\n <\/div>\n <\/div>\n\n <\/div>\n <div class=\"checklist-note\">No single mechanism eliminates double taxation between the United States and Brazil. Every cross-border payment stream must be modelled from both sides (including GILTI and Subpart F implications for undistributed Brazilian profits), applying each country’s domestic rules independently. The combined tax cost often exceeds what applies in treaty jurisdictions.<\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section cream\" id=\"brazil-taxes-outbound\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Brazilian tax<\/div>\n <h2 class=\"section-title\">Brazilian withholding income taxes on payments to US recipients<\/h2>\n <p class=\"section-intro\">Brazil imposes Withholding Income Tax (<em>Imposto de Renda Retido na Fonte<\/em>, <strong>IRRF<\/strong>) on most categories of income paid to non-resident recipients, including US entities and individuals. The IRRF is withheld by the Brazilian payer and remitted to the <a href=\"https:\/\/www.gov.br\/receitafederal\/en\">Federal Revenue Department (<em>Receita Federal do Brasil<\/em>)<\/a>.<\/p>\n\n <h3 class=\"sub-heading\">Withholding income tax (IRRF) rates<\/h3>\n <table class=\"rate-table\">\n <thead><tr><th>Payment type<\/th><th>IRRF rate<\/th><th>Notes<\/th><\/tr><\/thead>\n <tbody>\n <tr>\n <td><strong>Dividends<\/strong><\/td>\n <td><span class=\"rate-badge\">10%<\/span><\/td>\n <td><a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a> introduced a 10% withholding income tax on dividends remitted abroad. US shareholders should review their foreign tax credit (<strong>FTC<\/strong>) position under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/901\">IRC sections 901–909<\/a>, as this IRRF should generally be creditable.<\/td>\n <\/tr>\n <tr>\n <td><strong>Interest<\/strong><\/td>\n <td><span class=\"rate-badge\">15%<\/span><span class=\"rate-note\">Standard rate<\/span><\/td>\n <td>Interest paid to non-residents is generally subject to 15% IRRF. A rate of 25% applies where the beneficiary is resident in a low-tax jurisdiction under Brazilian rules.<\/td>\n <\/tr>\n <tr>\n <td><strong>Interest on Net Equity (JCP)<\/strong><\/td>\n <td><span class=\"rate-badge\">17.5%<\/span><\/td>\n <td>Interest on Net Equity (<em>Juros sobre Capital Próprio<\/em>, <strong>JCP<\/strong>) is a Brazilian mechanism allowing notional interest deductions on equity. The IRRF rate on JCP payments to non-residents was increased to 17.5% by <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/leis\/lcp\/lcp224.htm\">Complementary Law 224\/2025<\/a>.<\/td>\n <\/tr>\n <tr>\n <td><strong>Royalties and technical services<\/strong><\/td>\n <td><span class=\"rate-badge\">15%<\/span><span class=\"rate-note\">CIDE may also apply<\/span><\/td>\n <td>Royalties for technology transfer and technical services attract 15% IRRF. The Economic Intervention Contribution (<em>Contribuição de Intervenção no Domínio Econômico<\/em>, <strong>CIDE<\/strong>) of 10% may also apply on technology remittances, borne by the Brazilian payer on top of the contract price.<\/td>\n <\/tr>\n <tr>\n <td><strong>Services (general)<\/strong><\/td>\n <td><span class=\"rate-badge\">25%<\/span><\/td>\n <td>Remuneration for services rendered by non-resident individuals generally attracts 25% IRRF. Services rendered by non-resident legal entities may be subject to 15% or 25% depending on the nature and structure of the payment.<\/td>\n <\/tr>\n <tr>\n <td><strong>Capital gains<\/strong><\/td>\n <td><span class=\"rate-badge\">15–22.5%<\/span><\/td>\n <td>Capital gains realised by non-residents on Brazilian assets are subject to a progressive IRRF schedule: 15% up to BRL 5 million, rising to 22.5% above BRL 30 million.<\/td>\n <\/tr>\n <tr>\n <td><strong>Rental income<\/strong><\/td>\n <td><span class=\"rate-badge\">15%<\/span><\/td>\n <td>Rental income paid to non-resident individuals or entities is subject to 15% IRRF, withheld by the Brazilian payer.<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n\n <h3 class=\"sub-heading\">Other Brazilian taxes that apply alongside the IRRF<\/h3>\n <p class=\"body-text\">The IRRF is not the only Brazilian tax cost on cross-border payments. Depending on the nature of the transaction, the Brazilian payer may also be liable for the following, borne on top of the contract price.<\/p>\n <div class=\"info-grid\">\n <div class=\"info-box\">\n <div class=\"info-box-label\">Additional tax<\/div>\n <h4><strong>IOF<\/strong> (Tax on Financial Transactions)<\/h4>\n <p>IOF applies to the foreign exchange transaction associated with a cross-border payment. The rate varies by transaction type and tenor and is subject to frequent change by executive decree. It is borne by the Brazilian party executing the currency conversion.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Additional tax<\/div>\n <h4><strong>PIS<\/strong>-Import and <strong>COFINS<\/strong>-Import<\/h4>\n <p>Services imported into Brazil attract PIS-Import and COFINS-Import. The standard non-cumulative rates are 1.65% (PIS-Import) and 7.6% (COFINS-Import), totalling approximately 9.25% of the contract value for services. Companies on the cumulative basis pay reduced rates of 0.65% and 3% respectively. These contributions are levied on the Brazilian importer of services and are borne in addition to the contract price.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Additional tax<\/div>\n <h4><strong>ISS<\/strong> (Municipal Services Tax)<\/h4>\n <p>ISS applies to imported services at rates between 2% and 5%, depending on the municipality and the classification of the service. It is assessed on the Brazilian payer on the gross contract value.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Additional tax<\/div>\n <h4><strong>CIDE<\/strong> (Economic Intervention Contribution)<\/h4>\n <p>CIDE at 10% applies to technology transfer and technical service payments remitted abroad. It is borne by the Brazilian payer on top of the contract value, not withheld from the US party’s receipt.<\/p>\n <\/div>\n <\/div>\n <div class=\"callout\">\n <p><strong>Indirect taxes reform: transitional period.<\/strong> 2026 is the first transitional year of Brazil’s new dual-VAT system. Companies must configure for dual compliance while new <em>Contribuição sobre Bens e Serviços<\/em> (<strong>CBS<\/strong>, a federal tax) and <em>Imposto sobre Bens e Serviços<\/em> (<strong>IBS<\/strong>, a state and municipal tax) fields are tested on electronic invoices. Full abolition of PIS and COFINS begins in 2027, with IBS replacing ICMS and ISS through 2033. Once fully implemented, CBS and IBS will together operate as a broad-based value added tax structurally comparable to modern VAT systems internationally. See our <a href=\"https:\/\/www.deqlaw.com.br\/en\/brazils-tax-reform-what-every-business-needs-to-know\/\">Brazil tax reform guide<\/a> for a full overview.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section cream\" id=\"brazil-tax-regimes\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Brazilian corporate tax<\/div>\n <h2 class=\"section-title\">The 34% headline rate is not what most Brazilian companies actually pay.<\/h2>\n <p class=\"section-intro\">The 34% combined IRPJ\/CSLL rate applies under the Actual Profit regime (Lucro Real), where tax is calculated on audited net profit after allowable deductions. Many Brazilian companies instead use the Deemed Profit regime (Lucro Presumido), which produces substantially lower effective rates and has important implications for US investors modelling their returns and assessing GILTI and Pillar Two exposure.<\/p>\n <div class=\"info-grid\">\n <div class=\"info-box\">\n <div class=\"info-box-label\">Tax regime<\/div>\n <h4>Actual Profit regime (Lucro Real)<\/h4>\n <p>Mandatory for financial institutions and companies with annual gross revenue above R$78 million. Tax is calculated on audited net profit after deductions. IRPJ at 15% plus 10% surtax on income over R$240,000 per year; CSLL at 9%. Combined headline rate: <strong>34%<\/strong> of taxable profit. Available by election to any company regardless of size.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Tax regime<\/div>\n <h4>Deemed Profit regime (Lucro Presumido)<\/h4>\n <p>Available to companies with annual gross revenue up to R$78 million. Tax base is a fixed percentage of gross revenue rather than actual profit. <strong>Services:<\/strong> 32% deemed margin, producing effective combined IRPJ\/CSLL on revenue of roughly 11–14%. <strong>Commerce and industry:<\/strong> 8% deemed margin, roughly 3–5% on revenue. A highly profitable service company may pay considerably less than 34% of actual profit.<\/p>\n <\/div>\n <\/div>\n <div class=\"callout\">\n <p><strong>GILTI and Pillar Two implications.<\/strong> A Brazilian controlled foreign corporation (<strong>CFC<\/strong>) on the Deemed Profit regime may carry a low effective tax rate relative to its actual profitability. For US shareholders, this affects the GILTI high-tax exclusion analysis: where the Brazilian entity’s effective rate falls below 90% of the US corporate rate (currently 18.9%), GILTI inclusion may arise. It also affects Pillar Two: Brazil enacted its own minimum tax rules under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2024\/lei\/L15079.htm\">Law 15,079\/2024<\/a>, and the interaction between US GILTI and Brazilian top-up tax requires careful modelling. US-headquartered multinationals with Brazilian subsidiaries should assess GILTI and GloBE exposure on an entity-by-entity basis.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section\" id=\"tax-stacking\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Tax stacking<\/div>\n <h2 class=\"section-title\">How Brazilian taxes stack up on a single transaction<\/h2>\n <p class=\"section-intro\">One of the most important features of the Brazil–US tax relationship is that multiple Brazilian taxes apply simultaneously to the same payment. The IRRF reduces what the US party receives; additional taxes (PIS-Import, COFINS-Import, ISS, CIDE, IOF) increase what the Brazilian party pays. The combined effect makes the true cost of a cross-border transaction substantially higher than the face value of the contract, often by 20–40% or more.<\/p>\n <p class=\"body-text\">The examples below use a base contract value of USD 100,000. IOF is excluded given the variability of its rate. The US tax figures in examples 3 and 4 use a simplified 21% corporate rate and do not account for GILTI, Subpart F, or state taxes.<\/p>\n\n <div class=\"example-grid\">\n <div class=\"example-box\">\n <div class=\"example-header\"><h4>Example 1: Technical services fee<\/h4><p>USD 100,000 paid by a Brazilian company to a US service provider<\/p><\/div>\n <div class=\"example-body\">\n <div class=\"example-row\"><span class=\"example-label\">Contract value<\/span><span class=\"example-amount\">USD 100,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">IRRF at 15%, withheld from payment<small>Borne by the US provider; remitted to Receita Federal<\/small><\/span><span class=\"example-amount debit\">− USD 15,000<\/span><\/div>\n <div class=\"example-row subtotal\"><span class=\"example-label\"><strong>Net received by US provider<\/strong><\/span><span class=\"example-amount net\">USD 85,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">CIDE at 10%<small>Additional cost borne by Brazilian payer (technical services)<\/small><\/span><span class=\"example-amount debit\">+ USD 10,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">PIS-Import at 1.65% (non-cumulative)<small>Additional cost borne by Brazilian payer<\/small><\/span><span class=\"example-amount debit\">+ USD 1,650<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">COFINS-Import at 7.6% (non-cumulative)<small>Additional cost borne by Brazilian payer<\/small><\/span><span class=\"example-amount debit\">+ USD 7,600<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">ISS at 5% (São Paulo)<small>Additional cost borne by Brazilian payer<\/small><\/span><span class=\"example-amount debit\">+ USD 5,000<\/span><\/div>\n <div class=\"example-row total\"><span class=\"example-label\">Total cost to Brazilian payer<\/span><span class=\"example-amount\">USD 124,250<\/span><\/div>\n <\/div>\n <div class=\"example-footer\">Total Brazilian tax burden: USD 39,250 (39.25% of contract value). CIDE applies because technical services involve technology transfer to the Brazilian payer.<\/div>\n <\/div>\n <div class=\"example-box\">\n <div class=\"example-header\"><h4>Example 2: Technology royalties<\/h4><p>USD 100,000 royalty paid by a Brazilian licensee to a US licensor<\/p><\/div>\n <div class=\"example-body\">\n <div class=\"example-row\"><span class=\"example-label\">Contract value<\/span><span class=\"example-amount\">USD 100,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">IRRF at 15%, withheld from payment<small>Borne by the US licensor<\/small><\/span><span class=\"example-amount debit\">− USD 15,000<\/span><\/div>\n <div class=\"example-row subtotal\"><span class=\"example-label\"><strong>Net received by US licensor<\/strong><\/span><span class=\"example-amount net\">USD 85,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">CIDE at 10%<small>Additional cost borne by Brazilian payer<\/small><\/span><span class=\"example-amount debit\">+ USD 10,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">PIS-Import at 1.65% (non-cumulative)<small>Additional cost borne by Brazilian payer<\/small><\/span><span class=\"example-amount debit\">+ USD 1,650<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">COFINS-Import at 7.6% (non-cumulative)<small>Additional cost borne by Brazilian payer<\/small><\/span><span class=\"example-amount debit\">+ USD 7,600<\/span><\/div>\n <div class=\"example-row total\"><span class=\"example-label\">Total cost to Brazilian payer<\/span><span class=\"example-amount\">USD 119,250<\/span><\/div>\n <\/div>\n <div class=\"example-footer\">Total Brazilian tax burden: USD 34,250 (34.25% of contract value). Brazilian IRRF on royalties should generally qualify as a creditable foreign tax for US FTC purposes.<\/div>\n <\/div>\n <div class=\"example-box\">\n <div class=\"example-header\"><h4>Example 3: Dividend distribution<\/h4><p>USD 100,000 dividend remitted by Brazilian subsidiary to US parent<\/p><\/div>\n <div class=\"example-body\">\n <div class=\"example-row\"><span class=\"example-label\">Profit available for distribution<\/span><span class=\"example-amount\">USD 100,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">IRRF at 10%, Law 15,270\/2025<small>Withheld by Brazilian subsidiary<\/small><\/span><span class=\"example-amount debit\">− USD 10,000<\/span><\/div>\n <div class=\"example-row subtotal\"><span class=\"example-label\"><strong>Net received by US parent<\/strong><\/span><span class=\"example-amount net\">USD 90,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">US corporate income tax at 21%<small>On USD 100,000 before FTC<\/small><\/span><span class=\"example-amount debit\">USD 21,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">FTC for Brazilian IRRF<small>Creditable against US federal tax<\/small><\/span><span class=\"example-amount net\">− USD 10,000<\/span><\/div>\n <div class=\"example-row total\"><span class=\"example-label\">Net US federal tax after FTC<\/span><span class=\"example-amount\">USD 11,000<\/span><\/div>\n <\/div>\n <div class=\"example-footer\">Combined Brazil + US federal tax: USD 21,000 (21% of profit distributed). Note: GILTI and Subpart F may apply to the underlying Brazilian profits before distribution.<\/div>\n <\/div>\n <div class=\"example-box\">\n <div class=\"example-header\"><h4>Example 4: Intercompany interest payment<\/h4><p>USD 100,000 interest paid by Brazilian subsidiary to US parent lender<\/p><\/div>\n <div class=\"example-body\">\n <div class=\"example-row\"><span class=\"example-label\">Interest payment<\/span><span class=\"example-amount\">USD 100,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">IRRF at 15%, withheld from payment<small>Borne by the US lender<\/small><\/span><span class=\"example-amount debit\">− USD 15,000<\/span><\/div>\n <div class=\"example-row subtotal\"><span class=\"example-label\"><strong>Net received by US lender<\/strong><\/span><span class=\"example-amount net\">USD 85,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">US corporate income tax at 21%<small>On USD 100,000 before FTC<\/small><\/span><span class=\"example-amount debit\">USD 21,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">FTC for Brazilian IRRF<small>Subject to FTC limitation rules<\/small><\/span><span class=\"example-amount net\">− USD 15,000<\/span><\/div>\n <div class=\"example-row total\"><span class=\"example-label\">Net US federal tax after FTC<\/span><span class=\"example-amount\">USD 6,000<\/span><\/div>\n <\/div>\n <div class=\"example-footer\">Combined Brazil + US federal tax: USD 21,000 (21% of interest paid). Short-term loans (under 365 days) attract IOF on the foreign exchange leg at 3.5% under Decree 6,306\/2007; loans exceeding 364 days attract IOF at 0%.<\/div>\n <\/div>\n <\/div>\n\n \n <h3 class=\"sub-heading\">Importing physical goods into Brazil<\/h3>\n <p class=\"body-text\">The examples above apply to financial flows and services. Physical goods exported from the United States into Brazil face a separate and cumulative customs and indirect tax regime. Goods imports attract Import Tax (<em>Imposto de Importação<\/em>, <strong>II<\/strong>), the Tax on Industrialised Products (<em>Imposto sobre Produtos Industrializados<\/em>, <strong>IPI<\/strong>), PIS-Import and COFINS-Import at the goods rates (which at 2.1% and 9.65% respectively are higher than the 1.65%\/7.6% service rates), and ICMS, the state-level VAT, calculated on a grossed-up base that includes all other taxes. The United States has no free trade agreement with Brazil, and goods enter under the Mercosur Common External Tariff (<strong>TEC<\/strong>). The combined burden typically adds 40–70% or more to the CIF value depending on the product’s NCM tariff classification and destination state. The example below uses illustrative rates for typical industrial goods; actual rates must be verified by NCM code before importation. For a full breakdown of the Brazilian customs regime, see our <a href=\"https:\/\/www.deqlaw.com.br\/en\/brazil-tax-guide\/\">Brazil Tax Guide<\/a>.<\/p>\n\n <div class=\"example-grid\" style=\"grid-template-columns:1fr;\">\n <div class=\"example-box\">\n <div class=\"example-header\">\n <h4>Example 5: Merchandise import<\/h4>\n <p>USD 100,000 CIF value of industrial goods shipped from the United States to Brazil (illustrative tariff rates)<\/p>\n <\/div>\n <div class=\"example-body\">\n <div class=\"example-row\"><span class=\"example-label\">CIF value (customs value at point of entry)<\/span><span class=\"example-amount\">USD 100,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">Import Tax (II) at 12% of CIF<small>Rate set by NCM tariff code; typically 0%–35%. No US–Brazil FTA; TEC rates apply.<\/small><\/span><span class=\"example-amount debit\">+ USD 12,000<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">IPI at 5% of (CIF + II = USD 112,000)<small>Tax on industrialised products; varies by product, 0% for many categories.<\/small><\/span><span class=\"example-amount debit\">+ USD 5,600<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">PIS-Import at 2.1% of CIF<small>Goods rate; higher than the 1.65% rate that applies to imported services.<\/small><\/span><span class=\"example-amount debit\">+ USD 2,100<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">COFINS-Import at 9.65% of CIF<small>Goods rate; higher than the 7.6% rate that applies to imported services.<\/small><\/span><span class=\"example-amount debit\">+ USD 9,650<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">ICMS at 18%, tax-inclusive basis (São Paulo)<small>State VAT calculated on a grossed-up base including all other taxes plus the ICMS itself. Rate varies by state (12%–25%) and product.<\/small><\/span><span class=\"example-amount debit\">+ USD 28,394<\/span><\/div>\n <div class=\"example-row\"><span class=\"example-label\">Merchant Marine Renewal Surcharge (<em>Adicional ao Frete para a Renovação da Marinha Mercante<\/em>, <strong>AFRMM<\/strong>) at 25% of sea freight<small>Sea freight imports only; does not apply to air freight. Calculated on the freight component of the CIF value. If sea freight = USD 5,000 (illustrative), AFRMM = USD 1,250. Add to total if goods arrive by sea.<\/small><\/span><span class=\"example-amount debit\">+ USD 1,250 *<\/span><\/div>\n <div class=\"example-row total\"><span class=\"example-label\">Total landed cost (sea freight)<\/span><span class=\"example-amount\">USD 158,994<\/span><\/div>\n <\/div>\n <div class=\"example-footer\">Total Brazilian import taxes (sea freight): approx. USD 58,994 (59.0% of CIF). Without AFRMM (air freight): approx. USD 57,744 (57.7%). * AFRMM assumes sea freight of USD 5,000; actual freight cost varies by weight, volume, route, and Incoterms. Business importers on the Actual Profit regime (Lucro Real) may recover IPI and ICMS credits against output tax on domestic sales; end consumers cannot. ICMS is calculated on a tax-inclusive basis. Rates vary substantially: II from 0% to 35%+ by NCM code; IPI from 0% upward; ICMS from 12% to 25% by state and product category.<\/div>\n <\/div>\n <\/div>\n\n <div class=\"callout\">\n <p><strong>These are simplified illustrations.<\/strong> The actual tax burden on any transaction depends on a range of factors: the correct classification of the payment under Brazilian law, the IOF rate at the time of the currency conversion, the availability and basket limitations of the FTC, state and municipal variations in ISS rates, PIS\/COFINS-Import obligations during the CBS\/IBS transition, and the impact of GILTI, Subpart F, and US state and local taxes on the underlying Brazilian profits. The merchandise import example uses illustrative tariff rates that must be verified against the applicable NCM code. These figures are provided to illustrate the stacking effect, not as a substitute for transaction-specific advice.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section cream\" id=\"us-taxes-brazil\">\n <div class=\"section-inner\">\n <div class=\"section-label\">US tax<\/div>\n <h2 class=\"section-title\">US taxation of Brazil-sourced income<\/h2>\n <p class=\"section-intro\">The United States taxes its citizens and resident aliens on worldwide income, and taxes US corporations on the income of their controlled foreign subsidiaries through the <a href=\"https:\/\/www.irs.gov\/businesses\/corporations\/gilti-resources-for-tax-professionals\">GILTI<\/a> and <a href=\"https:\/\/www.irs.gov\/businesses\/corporations\/subpart-f-income\">Subpart F<\/a> regimes. Brazil-sourced income is within scope.<\/p>\n\n <h3 class=\"sub-heading\">US corporations investing in Brazil<\/h3>\n <p class=\"body-text\">A US corporation that invests in Brazil through a subsidiary will generally recognise Brazilian income for US tax purposes through one of two mechanisms.<\/p>\n <div class=\"info-grid\">\n <div class=\"info-box\">\n <div class=\"info-box-label\">US tax mechanism<\/div>\n <h4>Global Intangible Low-Taxed Income (<strong>GILTI<\/strong>)<\/h4>\n <p>GILTI applies to the net income of controlled foreign corporations (<strong>CFCs<\/strong>) not otherwise captured by Subpart F. Brazilian operating income of a CFC is generally subject to GILTI inclusion in the hands of the US shareholder, subject to a deduction under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/250\">IRC section 250<\/a> and a foreign tax credit.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">US tax mechanism<\/div>\n <h4>Subpart F income<\/h4>\n <p>Certain passive and mobile income (interest, dividends, rents, royalties, and related-party sales income) earned by a Brazilian CFC may constitute Subpart F income, currently includible by the US shareholder regardless of whether profits are repatriated.<\/p>\n <\/div>\n <\/div>\n\n <h3 class=\"sub-heading\">Foreign tax credits<\/h3>\n <p class=\"body-text\">The primary mechanism for avoiding double taxation in the absence of a treaty is the US foreign tax credit (<strong>FTC<\/strong>). A US taxpayer who pays Brazilian income tax (including IRRF) may generally claim a credit against US tax liability for the Brazilian taxes paid, subject to the FTC limitation rules under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/901\">IRC sections 901–909<\/a>. Brazilian contributions such as PIS\/COFINS are generally not creditable as foreign income taxes for US purposes, meaning they represent a true additional cost. By contrast, the 10% IRRF on dividends under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a> should generally qualify as a creditable foreign income tax.<\/p>\n\n <h3 class=\"sub-heading\">Branch profits tax and withholding on US inbound payments<\/h3>\n <p class=\"body-text\">Where a Brazilian company operates in the United States through a branch rather than a subsidiary, the US branch profits tax (currently 30%) applies to after-tax earnings deemed repatriated to the Brazilian head office. The 30% statutory rate applies in full in the absence of a treaty reduction. For payments from US entities to Brazilian recipients, US domestic withholding taxes at 30% may apply on fixed or determinable annual or periodic income.<\/p>\n\n <div class=\"callout\">\n <p><strong>FATCA and the August 2025 Competent Authority Arrangement.<\/strong> Brazilian financial institutions are subject to FATCA under the <a href=\"https:\/\/home.treasury.gov\/system\/files\/131\/FATCA-Agreement-Brazil-3-23-2014.pdf\">intergovernmental agreement<\/a> between Brazil and the United States. On 27 August 2025, the US and Brazil signed a new <a href=\"https:\/\/www.irs.gov\/pub\/irs-lbi\/brazil-caa-spontaneous-eoi.pdf\">Competent Authority Arrangement<\/a> providing for spontaneous and proactive exchange of tax information between the two authorities. This substantially expands the sharing of data between the IRS and the <a href=\"https:\/\/www.gov.br\/receitafederal\/en\">Federal Revenue Department (<em>Receita Federal do Brasil<\/em>)<\/a> beyond what the prior TIEA and FATCA required. Opacity is no longer a practical position for US persons with Brazilian interests, or Brazilian nationals with US financial accounts.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section\" id=\"transfer-pricing\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Transfer pricing<\/div>\n <h2 class=\"section-title\">Transfer pricing: Brazil’s new OECD-aligned rules<\/h2>\n <p class=\"section-intro\">Brazil has historically applied a fixed-margin transfer pricing system that diverged fundamentally from OECD standards. <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2023\/lei\/l14596.htm\">Law 14,596\/2023<\/a> and <a href=\"https:\/\/normas.receita.fazenda.gov.br\/sijut2consulta\/link.action?idAto=127751\">IN RFB 2,161\/2023<\/a> replaced this system with rules aligned with the OECD arm’s-length standard, with full effect from 2024.<\/p>\n\n <h3 class=\"sub-heading\">The new arm’s-length standard<\/h3>\n <p class=\"body-text\">Brazil’s new transfer pricing rules adopt the arm’s-length principle and the OECD Transfer Pricing Guidelines. The main changes for US–Brazil related-party transactions include:<\/p>\n <ul class=\"step-list\">\n <li><span class=\"step-num\">1<\/span><div><strong>Functional and comparability analysis<\/strong> Pricing is determined by reference to a controlled transaction’s functions, assets, and risks, compared against comparable uncontrolled transactions, consistent with the approach under <a href=\"https:\/\/www.law.cornell.edu\/cfr\/text\/26\/1.482\">US Treasury Regulation section 1.482<\/a>.<\/div><\/li>\n <li><span class=\"step-num\">2<\/span><div><strong>Accepted OECD methods<\/strong> The new rules recognise the full suite of OECD-approved methods: CUP, resale price, cost-plus, TNMM, and profit split. The “best method” concept applies.<\/div><\/li>\n <li><span class=\"step-num\">3<\/span><div><strong>Intangibles and intragroup services<\/strong> Rules on hard-to-value intangibles and low-value-adding services follow OECD guidance. The absence of a MAP mechanism to resolve disputes remains a gap.<\/div><\/li>\n <li><span class=\"step-num\">4<\/span><div><strong>Country-by-Country Reporting (CbCR)<\/strong> Brazilian members of multinational groups are required to submit CbCR reports to the <a href=\"https:\/\/www.gov.br\/receitafederal\/en\">Federal Revenue Department (<em>Receita Federal do Brasil<\/em>)<\/a>, which participates in BEPS and exchanges CbCR data with the IRS.<\/div><\/li>\n <\/ul>\n <div class=\"callout\">\n <p><strong>Thin capitalisation.<\/strong> Brazil imposes thin capitalisation rules restricting the deductibility of interest on related-party debt. Where the Brazilian borrower’s related-party debt exceeds a prescribed debt-to-equity ratio, interest deductions are disallowed. These rules interact with the new transfer pricing framework and require careful attention when structuring debt financing between US parents and Brazilian subsidiaries.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section navy-bg\" id=\"individuals\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Individuals<\/div>\n <h2 class=\"section-title\">Individuals: US citizens in Brazil and Brazilian nationals in the United States<\/h2>\n <p class=\"section-intro\">The treatment of individuals crossing between Brazil and the United States is particularly complex in the absence of a treaty, as both countries may assert full tax residence simultaneously.<\/p>\n\n <h3 class=\"sub-heading\">US citizens and Green Card holders in Brazil<\/h3>\n <p class=\"body-text\">The United States taxes its citizens and permanent residents on worldwide income regardless of where they reside. A US citizen living and working in Brazil is therefore subject to Brazilian income tax on Brazil-sourced income and also subject to US income tax on the same income. Three domestic US mechanisms provide partial relief.<\/p>\n <table class=\"rate-table\">\n <thead><tr><th>Relief mechanism<\/th><th>Applicable to<\/th><th>Key limitation<\/th><\/tr><\/thead>\n <tbody>\n <tr>\n <td><strong>Foreign Earned Income Exclusion (<strong>FEIE<\/strong>)<\/strong><br><span style=\"font-size:13px;color:rgba(255,255,255,0.4)\"><a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/911\">IRC § 911<\/a><\/span><\/td>\n <td>US citizens and resident aliens abroad<\/td>\n <td>Limited to employment and self-employment income; investment income is excluded. The 2026 exclusion amount is approximately USD 130,000 (indexed annually for inflation).<\/td>\n <\/tr>\n <tr>\n <td><strong>Foreign Tax Credit (FTC)<\/strong><br><span style=\"font-size:13px;color:rgba(255,255,255,0.4)\"><a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/901\">IRC §§ 901–909<\/a><\/span><\/td>\n <td>US persons paying creditable foreign taxes<\/td>\n <td>Brazilian income tax generally qualifies. The credit is limited to US tax on foreign-source income; excess credits can be carried back one year or forward ten years.<\/td>\n <\/tr>\n <tr>\n <td><strong>Foreign Housing Exclusion\/Deduction<\/strong><\/td>\n <td>US citizens abroad with qualifying housing costs<\/td>\n <td>Supplements the FEIE; limited by the IRS cost-of-living index for São Paulo or the relevant city, determined annually.<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n\n <h3 class=\"sub-heading\">Brazilian tax residents in the United States<\/h3>\n <p class=\"body-text\">A Brazilian national who establishes tax residence in the United States remains subject to Brazilian taxation until the formal <em>Saída Definitiva<\/em> process is completed with the <a href=\"https:\/\/www.gov.br\/receitafederal\/en\">Federal Revenue Department (<em>Receita Federal do Brasil<\/em>)<\/a>. Until this is done, for the first 12 months of residing abroad the individual remains subject to Brazilian income tax on worldwide income, producing genuine double taxation with no treaty mechanism to resolve it. Brazilian residents departing permanently for the United States should take advice on the <em>Saída Definitiva<\/em> process before their departure date.<\/p>\n\n <h3 class=\"sub-heading\">US exit tax<\/h3>\n <p class=\"body-text\">US citizens who renounce their citizenship and long-term permanent residents who relinquish their Green Cards may be subject to the US exit tax under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/877A\">IRC section 877A<\/a> if they meet the relevant net worth or tax liability thresholds. This is an important consideration for Brazilian nationals who have held Green Cards for an extended period and are returning to Brazil.<\/p>\n\n <div class=\"callout\">\n <p><strong>Social security totalisation.<\/strong> Brazil and the United States do not have a social security totalisation agreement. Individuals working in one country for an employer based in the other may therefore be required to contribute to both countries’ social security systems simultaneously. For US employers seconding employees to Brazil, Brazilian National Social Security Contributions (<strong>INSS<\/strong>) apply to Brazilian-payroll employees in addition to any continued US Federal Insurance Contributions Act (<strong>FICA<\/strong>) obligations, increasing total employment cost significantly.<\/p>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"content-section\" id=\"structuring\">\n <div class=\"section-inner\">\n <div class=\"section-label\">Structuring<\/div>\n <h2 class=\"section-title\">Structuring considerations for US investors in Brazil<\/h2>\n <p class=\"section-intro\">In the absence of a DTA, the holding structure chosen for a US investment in Brazil has a direct and material impact on the overall tax burden. Several considerations merit attention at the planning stage.<\/p>\n\n <h3 class=\"sub-heading\">Holding structure<\/h3>\n <ul class=\"step-list\">\n <li><span class=\"step-num\">•<\/span><div><strong>Direct US holding<\/strong> The simplest structure, but exposes dividend flows to 10% IRRF under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a> and full US taxation, with relief available only through domestic FTC mechanisms. GILTI and Subpart F inclusion rules apply to the Brazilian subsidiary’s income.<\/div><\/li>\n <li><span class=\"step-num\">•<\/span><div><strong>Intermediate DTA-country holding<\/strong> Routing the investment through a jurisdiction that has both a DTA with Brazil and an acceptable tax relationship with the United States can reduce IRRF on outbound flows from Brazil and provide a MAP mechanism for transfer pricing disputes. This must be assessed carefully against Brazil’s beneficial ownership and anti-treaty-shopping rules.<\/div><\/li>\n <li><span class=\"step-num\">•<\/span><div><strong>Brazilian holding (Ltda. or S.A.)<\/strong> Consolidating Brazilian operations under a Brazilian holding company defers the 10% IRRF on dividends, which applies only on remittances abroad under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a>, not on distributions between Brazilian entities. The foreign investment must be registered with the <a href=\"https:\/\/www.bcb.gov.br\/en\" class=\"ref-link\">Central Bank of Brazil<\/a>.<\/div><\/li>\n <\/ul>\n\n <h3 class=\"sub-heading\">Debt vs equity financing<\/h3>\n <p class=\"body-text\">Interest on qualifying debt is deductible at the Brazilian level, but IRRF at 15% applies on the outbound payment to the US lender. JCP payments are deductible but attract 17.5% IRRF under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/leis\/lcp\/lcp224.htm\">Complementary Law 224\/2025<\/a>. Dividends attract 10% IRRF under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a>. The interaction between Brazil’s thin capitalisation rules and the arm’s-length pricing of intercompany loans requires specific attention.<\/p>\n\n <h3 class=\"sub-heading\">Capital gains planning<\/h3>\n <p class=\"body-text\">On a disposal of Brazilian assets, non-resident sellers are subject to IRRF on capital gains at rates of 15% to 22.5%, depending on the gain amount. The US seller will also recognise a capital gain for US purposes, with relief available only through the FTC mechanism. The timing and structuring of a disposal can affect the Brazilian tax characterisation and the crediting position in the United States.<\/p>\n\n <hr class=\"rule\">\n\n <h3 class=\"sub-heading\">Key takeaways for US investors<\/h3>\n <div class=\"info-grid\">\n <div class=\"info-box\">\n <div class=\"info-box-label\">Planning point<\/div>\n <h4>Structure early<\/h4>\n <p>The holding structure decision should be made before the investment is established. Restructuring after the fact can trigger Brazilian tax events and complicate the Central Bank of Brazil registration.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Planning point<\/div>\n <h4>Register the investment with the Central Bank of Brazil<\/h4>\n <p>Foreign direct investment in Brazil must be registered with the <a href=\"https:\/\/www.bcb.gov.br\/en\" class=\"ref-link\">Central Bank of Brazil<\/a>. Correct registration is a precondition for the repatriation of capital and the remittance of profits.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Planning point<\/div>\n <h4>Review FTC eligibility for dividend IRRF<\/h4>\n <p>The 10% IRRF on dividends under <a href=\"https:\/\/www.planalto.gov.br\/ccivil_03\/_ato2023-2026\/2025\/lei\/l15270.htm\">Law 15,270\/2025<\/a> should generally qualify as a creditable foreign income tax. US shareholders should confirm their FTC position and model the net cost of repatriation under current rates.<\/p>\n <\/div>\n <div class=\"info-box\">\n <div class=\"info-box-label\">Planning point<\/div>\n <h4>Coordinate US and Brazilian advisers<\/h4>\n <p>In the absence of a DTA, the interaction between US and Brazilian tax rules requires coordinated legal and tax advice in both jurisdictions. My law firm works alongside US tax counsel on cross-border mandates.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/section>\n\n\n<div class=\"warning-strip\">\n <div class=\"warning-inner\">\n <div class=\"warning-icon\">⚠<\/div>\n <p>This guide is a general overview only and does not constitute legal or tax advice. Tax laws in both countries change frequently, including legislative reforms currently in progress, and the information in this guide reflects the position as understood at the time of publication. The specific tax treatment of any transaction depends on the facts, the structure adopted, and the current state of the law in each jurisdiction. Obtain specific legal and tax advice before structuring any cross-border transaction.<\/p>\n <\/div>\n<\/div>\n\n\n<section class=\"cta-section\">\n <div class=\"cta-inner\">\n <div class=\"section-label\">Get advice<\/div>\n <h2>Need advice on your US–Brazil tax structure?<\/h2>\n <p>This guide provides general information only. The interaction of US and Brazilian tax rules in the absence of a DTA requires careful, transaction-specific analysis. Contact us to discuss your situation.<\/p>\n <div class=\"cta-contact-box\">\n <div class=\"box-label\">Contact us<\/div>\n <a href=\"mailto:info@deqlaw.com.br\" class=\"email\">info@deqlaw.com.br<\/a>\n <a href=\"mailto:info@deqlaw.com.br\" class=\"btn-primary\">Send Email Now<\/a>\n <\/div>\n <\/div>\n<\/section>\n\n\n<section class=\"disclaimer-section\">\n <div class=\"disclaimer-inner\">\n <p>This guide is prepared by <a href=\"https:\/\/www.deqlaw.com.br\">D&Q Lawyers<\/a> for general informational purposes only. It does not constitute legal or tax advice and should not be relied upon as such. Tax rates, legislation, and regulatory requirements are subject to change. Readers should obtain specific advice before taking any action in reliance on this material. © D&Q Lawyers.<\/p>\n <\/div>\n<\/section>\n\n<\/div>\n<\/body>\n<\/html><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":6,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-6014","page","type-page","status-publish","hentry"],"yoast_head":"\n<title>Brazil-United States Tax Guide - D&Q Lawyers<\/title>\n<meta name=\"description\" content=\"A practical guide to the tax rules affecting companies, investors, and individuals operating between Brazil and the United States.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Brazil-United States Tax Guide - D&Q Lawyers\" \/>\n<meta property=\"og:description\" content=\"A practical guide to the tax rules affecting companies, investors, and individuals operating between Brazil and the United States.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/\" \/>\n<meta property=\"og:site_name\" content=\"D&Q Lawyers\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-11T23:43:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/deqlaw.com.br\/wp-content\/uploads\/2023\/12\/favicondeq2-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"512\" \/>\n\t<meta property=\"og:image:height\" content=\"512\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"32 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/brazil-united-states-tax-guide\\\/\",\"url\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/brazil-united-states-tax-guide\\\/\",\"name\":\"Brazil-United States Tax Guide - D&Q Lawyers\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/#website\"},\"datePublished\":\"2026-04-09T02:13:07+00:00\",\"dateModified\":\"2026-04-11T23:43:18+00:00\",\"description\":\"A practical guide to the tax rules affecting companies, investors, and individuals operating between Brazil and the United States.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/brazil-united-states-tax-guide\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/brazil-united-states-tax-guide\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/brazil-united-states-tax-guide\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Brazil-United States Tax Guide\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/\",\"name\":\"D&Q Lawyers\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/deqlaw.com.br\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n","yoast_head_json":{"title":"Brazil-United States Tax Guide - D&Q Lawyers","description":"A practical guide to the tax rules affecting companies, investors, and individuals operating between Brazil and the United States.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/","og_locale":"en_US","og_type":"article","og_title":"Brazil-United States Tax Guide - D&Q Lawyers","og_description":"A practical guide to the tax rules affecting companies, investors, and individuals operating between Brazil and the United States.","og_url":"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/","og_site_name":"D&Q Lawyers","article_modified_time":"2026-04-11T23:43:18+00:00","og_image":[{"width":512,"height":512,"url":"https:\/\/deqlaw.com.br\/wp-content\/uploads\/2023\/12\/favicondeq2-1.png","type":"image\/png"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"32 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/","url":"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/","name":"Brazil-United States Tax Guide - D&Q Lawyers","isPartOf":{"@id":"https:\/\/deqlaw.com.br\/en\/#website"},"datePublished":"2026-04-09T02:13:07+00:00","dateModified":"2026-04-11T23:43:18+00:00","description":"A practical guide to the tax rules affecting companies, investors, and individuals operating between Brazil and the United States.","breadcrumb":{"@id":"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/deqlaw.com.br\/en\/brazil-united-states-tax-guide\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/deqlaw.com.br\/en\/"},{"@type":"ListItem","position":2,"name":"Brazil-United States Tax Guide"}]},{"@type":"WebSite","@id":"https:\/\/deqlaw.com.br\/en\/#website","url":"https:\/\/deqlaw.com.br\/en\/","name":"D&Q Lawyers","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/deqlaw.com.br\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/pages\/6014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/comments?post=6014"}],"version-history":[{"count":9,"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/pages\/6014\/revisions"}],"predecessor-version":[{"id":6055,"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/pages\/6014\/revisions\/6055"}],"wp:attachment":[{"href":"https:\/\/www.deqlaw.com.br\/en\/wp-json\/wp\/v2\/media?parent=6014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}