The Dance of the Lions




Analyses of International Tax Treaties


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


(4.1.i) Related Enterprises (transfer pricing, armís length principle)


ß128. The Article 9 of the Convention Brazil-Belgium is clear in concerning to the world-wide income taxation according as, already considering the aspect of transfer pricing, makes with that, e.g., the profits of a company with headquarter in Brazil, that is a quota/shareholder of a Belgian company, and with this Belgian company has a financial relationship, be such profit considered in a manner arbitrated by the tax authorities of both Contracting States, existing as premise of such measuring the hypothesis of pricing in conditions of impartiality, of ideal market (armís length principle). States the norm of the Treaty:

ďif two companies are connected, in their commercial or financial relations, by conditions accepted or imposed that differs from those established among independent companies, the profits that, without these conditions, would be obtained by one of the companies, but were not obtained because of these conditions, may be included in the profits of this company and taxed as suchĒ.


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