Brazil and Poland to eliminate double taxation of income

Brazil and Poland have negotiated an agreement to eliminate double income taxation and prevent tax evasion.

The respective foreign ministers will sign the treaty on Tuesday (Sept. 20) during a bilateral meeting between the two countries presidents.

The meeting will take place in the United States, where President Jair Bolsonaro will speak at the opening of the United Nations (UN) General Assembly.

The negotiations were conducted by the Federal Tax Administration and the Polish Ministry of Finance tax authorities.

According to the Ministry of Economy, the document strengthens cooperation between the tax administrations of the two countries, promotes information exchange and best international tax practices, and provides greater legal certainty for Brazilian and Polish transnational companies.

The agreement is expected to increase bilateral trade and investment.

Trade flows between the two countries totaled about US$1.8 billion in 2021, according to the Foreign Trade Secretariat.

The document signing is also expected to strengthen Brazil’s process of joining the OECD (Organization for Economic Cooperation and Development).

Together with Poland, Brazil will now have bilateral agreements with 25 countries of the organization.