The Dance of the Lions




Analyses of International Tax Treaties


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


(4.1.n) Independent Occupation


§138. Example: in the case of a Brazilian lawyer, an accountant or a physician, provide service, as liberal professional, to Belgian companies, that will pay them trough international transfer of money, the taxation is of the Belgian State, such as it is possible understand from the Article 14, of the Tax Treaty Brazil-Belgium:

“The income that a resident of a Contracting State obtain from the performance of an independent occupation or of other independent activities with similar character only are taxed in this State, unless the payment of this remunerations is of obligation of a resident legal entity of the other State, or an obligation of a permanent establishment in this State. In these cases, these incomes will be taxed in this other State”

§139. I understand that two interpretations are possible concerning to this norm: by one side, there is an alternative, being or in one State or in the other that occurs the taxation; by other side, it is possible understand that this norm brings an idea of addition, in the meaning that can be taxed in both States – the first interpretation is at the side of the taxpayer, the second is at the side of the States. The Brazilian State, in this matter, allows, e.g., a Brazilian lawyer that receive from a Belgian company, discount the income tax payed in Belgium from the income tax payed in Brazil, in terms of the Decree 9.580/2018, Article 115:

“The natural persons that declares income originated from foreign sources can decrease, from the income measured in the form of Article 79 [related to a progressive table on the percentages according to the richness], the income tax charged by the State where the income was generated, since provided that:

I – in compliance with the established in agreement or international convention signed with the State of origin on the income, when was not restored or reimbursed in this country

II – there is a reciprocity relationship with the State where the income was generated

§ 1º – The deduction shall not exceed the difference among the income tax calculated with the inclusion of those incomes and the income tax without the inclusion of those incomes

§ 2º – The income tax payed abroad shall be converted in Brazilian currency using the value of the USA’s dollars for buy established by the Brazilian Central Bank for the last business-day of the first 15 days of the previous month to the receive of the income”

§140. In the same meaning the Law 9.250/1995, Article 12, VI:

“It is possible deduct from the income tax measured: ...VI – the tax payed abroad...”


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