The Dance of the Lions

 

II

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Analyses of International Tax Treaties

 

(4.1) Double Taxation Treaty (DTT) Brazil-Belgium

 

(4.1.d) Resident

 

§120. The tax domicile defines what is the normative order by which the person (natural person, legal entity, or entity of fact) is subjected. What is interest to note is when occurs a double consideration, by the internal legislation of the Contracting States, that the person is resident in both States for taxation purposes. How to solve this problem? The Treaty Brazil Belgium, that considers this conflict, express the following solution by its Article 4, 3:

will be considered resident of the Contracting State in which is the headquarter of effective administration

being important observes that the sanction never come from above because its is self-regulated by the States, in the terms that stay very clear in the Article 4, 2, d, which states how to solve the issue when there is a doubt about the tax domicile of a person:

d) if is national of both Contracting States or if is not national of none of them, the competent authorities of the Contracting States will solve the question in common agreement”,

therefore, the tax domicile overlaps the nationality for interpretation end – prove of the natural voracity of the lions.

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CONTACT for legal advice

 

Rafael De Conti, Rafael Augusto De Conti, Brazilian Tax Lawyer, Lawyer in Brazil