Last Friday, the “Agreement for the elimination of double taxation concerning income taxes and the prevention of tax evasion and avoidance” was signed between Colombia and Brazil.
This agreement aims to boost economic relations and investment by alleviating double taxation in both countries.
The agreement was signed by the Ambassador of Colombia to the Government of Brazil, Darío Alonso Montoya Mejía, and by the Special Secretary of the Receita Federal of Brazil, Julio Cesar Vieira Gomes.
It was achieved after multiple negotiations between Brazil’s Federal Revenue delegations and Colombia’s National Tax and Customs Directorate (Dian). The Non-Double Taxation Agreement once again ratifies the trust and relationship between the two nations.
The agreement is estimated to help double binational trade from US$5 billion to US$10 billion, the Colombian Embassy in Brazil tweeted on social media.
The agreement will also improve coordination between the two countries in the fight against tax evasion and avoidance.
For Colombia, “the signing of this agreement represents a major achievement in its goal of expanding the network of agreements with its main partners in the region, and will allow it to be a more competitive country in the global environment,” said the Dian.
International double taxation is defined as the imposition of taxes by two or more sovereign states on the same comparable income of the same taxable person and in the same period.
With information from El Comercio