Official Gazette of 23.12.2004
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Regulates the application of devices from the Convention between the Federative Republic of Brazil and the Spanish State for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income. |
The FEDERAL REVENUE SECRETARY, in the use of the attribution granted to him by the item III of Article 209 of the Internal Regiment of the Federal Revenue Secretariat, approved by the Ministerial Ruling nº 259, from 24 of August 2001, and having regard to the disposed in paragraph 3 of Article 25 of the Decree nº 76.975, from 2 of January 1976 (Convention Brazil-Spain), in the agreement through letter exchange settled in 26 of January 2003 with the Spanish Tributary Authority, and within the content of process nº 10168.004323/2004-55, declares:
Art. 1 In the hypothesis of dividends, the maximum rate applicable over the gross value remitted will be of ten percent, whenever the resident society from Spain owns at least twenty-five percent of the capital with the right to vote from the resident society in Brazil.
Art. 2 In the hypothesis of royalties, the taxation at source, incident on the gross value of the remittance, will be of the following rates:
I – ten percent, in case of use or concession of use of rights from the author of literary, artistic or scientific works (including cinematographic movies, recording films or tapes from television and broadcasting, when produced by a resident of Spain);
II – fifteen percent, in case of use or concession of use of industries or commerce trademarks; and
III – twelve and a half (12,5) percent, in all other cases.
Art. 3 In relation to royalties and technical services, the following should be observed:
I – included in the concept of royalties , for the purposes of this Convention, are all the technical services and technical support, regardless of presuming or not, in themselves, the transference of technology, with the exception of the content of proposition II;
II – the article 14 from the convention (“Independent Personal Services”) shall be applied to the technical services of professional nature related to the technical qualification of an individual or a group of individuals;
III – the article 22 of the Convention (“Other Income”) shall not apply, in any hypothesis, to technical services rendered by the company of one contracting Party in the territory of the other Party;
IV – the scope of application of the article 7 of the Convention (“Business Profits”) is considered restricted concerning the services comprised in propositions I, II and III from this article.
JORGE ANTONIO DEHER RACHID