On 14 October 2022 the Brazilian Senate finally approved the Tax Information Exchange Agreement with Bermuda (the “TIEA”). The TIEA was signed by Brazil and Bermuda back on 29 October 2012 (almost ten years prior to being approved by the Senate!) and will now to be sent to the Brazilian President for signing it into Law prior to notifying Bermuda.
On the Brazilian side, the TIEA is quite limited in scope, covering only information relating Brazil’s income tax (imposto de renda) and similar taxes. On Bermuda’s side the TIEA extends to information relating to indirect taxes of any nature and denomination.
Importantly, once the TIEA comes into force Brazil and Bermuda may exchange information pertaining to tax crimes that took place prior to the TIEA coming into force. Yet, for the other matters, only information relating to the tax period in or after which the TIEA came into force.
Last modified: October 27, 2022