Brazil Opens the Possibility to Review of the Status of the Countries or Dependencies Classified as Favored Taxation Jurisdictions or Privileged Fiscal Regimes

The latest list of favored taxation and privileged fiscal regimes countries and dependencies announced by the Secretary of the Brazilian Federal Revenue Office (Receita Federal do Brasil – RFB), through RFB Normative Instruction nº 1037, of June 4, 2010, which included Switzerland as a favored taxation jurisdiction and the Dutch Holding Companies as privileged fiscal regime entities, disliked many people who did not agree with such classification!

For this reason, by means of RFB Normative Instruction nº 1045, of June 23, 2010, the Brazilian tax authorities decided to permit the affected offshore jurisdictions to apply for the request of the review of their classification as favored taxation or privileged fiscal regime country or dependency. This new measure came into force on the following day...