Official Gazette of 02.03.2007
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Concerning the application of provisions of the Convention between the Federative Republic of Brazil and the United Mexican States for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income. |
The FEDERAL REVENUE SECRETARY, using the attributions conferred upon him by paragraph 3 of Article 230 of the Secretariat of Federal Revenue’s internal regulations, approved by Ordinance n. 30 of 25 February 2005, and having regard to the provisions of item 5 of the Protocol to the Convention between the Federative Republic of Brazil and the United Mexican States for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, promulgated by Decree n. 6,000 of 26 December 2006 (Brazil-Mexico Convention), and also the provisions of paragraph 2 of Article 12 of the Convention between the Federative Republic of Brazil and the Republic of South Africa for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, promulgated by Decree n. 5,922 of 3 October 2006 (Brazil-South Africa Convention), declares:
Article 1. Subject to more beneficial provisions of the domestic law, taxation at source of royalties dealt with in paragraph 2 of Article 12 of the Brazil-Mexico Convention, and of any income derived from the rendering of technical assistance and technical services dealt with in letter a of item 6 of the Protocol to the aforementioned Convention, where the beneficial owner is a resident of Mexico, cannot exceed:
a) 15% of the gross amount of the royalties for the use of, or the right to use, industrial or commercial trademarks;
b) 10% of the gross amount of the royalties in all other cases, inclusive any income derived from the rendering of technical assistance and technical services.
Article 2. This Interpretative Declaratory Act shall apply to taxable events occurred from 1 January 2007.
JORGE ANTONIO DEHER RACHID