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8.2.2. Withholding Taxes

As a general rule, income obtained from Brazil by non-resident legal entities or individuals is subject to withholding tax of 15% or 25%, unless a treaty provides otherwise.

There is no withholding tax on dividends in accordance with the Brazilian law.

Interest, royalties, rents and payments for technical assistance and similar services  are subject to withholding tax at the rate of 15%. This rate is increased to 25% if the recipient is resident or domiciled in a low-tax jurisdiction. See further Sec. 5.6. for greater details.

Brazil has concluded a number of tax treaties which may provide for lower withholding tax rates:

Treaties

RecipientDividends (%)Interest(%) Royalties(%)
ArgentinaNil1515
Austria151525, 15, 10
Belgium15,1015,1020,15,10
Canada1515,1025,15
Chile15,101515
China, P.R.151525,15
Czech Republic1515,1025,15
Denmark251525,15
Ecuador151525,15
Finland101525,15,10
France1515,1025,15,10
Hungary1515,1025,15
India151525,15
Israel15,101515,10
Italy151525,15
Japan12.512.525,15,12.5
Korea, Republic15,1015,1025,15,10
Luxembourg25,1515,1025,15
Mexico15,101515,10
Netherlands1515,1025,15
Norway15,1525,15
Peru15,101515
Philippines25,1515,1025,15
Portugal15,101515
Russia15,101515
Slovakia1515,1025,15
South Africa15,101515,10
Spain15,1015,1015,10
Sweden252525
Ukraine15,101515

The following table shows the most up-to-date standard domestic withholding tax rates.

Capital Gains 22.5 %
Dividends 0.0 %
Interest 25.0 %
Royalty Copyright 25.0 %
Royalty Patent 25.0 %
Royalty Trademark 25.0 %
Sales 0.0 %
Service Management 25.0 %
Service Technical 25.0 %

*Rates are current as of 25 September 2022