Legislation - Regulatory Instructions

Lists countries or jurisdictions with favored taxation and privileged tax regimes.


THE SECRETARY OF THE FEDERAL REVENUE OF BRAZIL, using the powers conferred to him by section III of art. 261 of the Internal Regulations of the Federal Revenue of Brazil, approved by the Ministry of Finance (MF) Ordinance No. 125, of March 4, 2009, and in view of the provisions of art. 24 of Law No. 9,430 of December 27, 1996; of art. 8 of Law No. 9,779 of January 19, 1999; of art. 7 of Law No. 9,959 of January 27, 2000; of § 1 of art. 29 of Provisional Measure No. 2,158-35 of August 24, 2001; of § 2 of art. 16 of Provisional Measure No. 2,189-49 of August 23, 2001; of arts. 3 and 4 of Law No. 10,451 of May 10, 2002, and of arts. 22 and 23 of Law No. 11,727 of June 23, 2008, resolves:
Article 1 For the purposes of the provisions in this Normative Instruction, the following jurisdictions are considered countries or jurisdictions that do not tax income or tax income at a rate lower than twenty percent (20%), and whose national laws do not allow access to information on the shareholding or ownership structure of legal entities:

I - Andorra;

II - Anguilla;

III - Antigua and Barbuda;

IV - The Netherlands Antilles;

V - Aruba;

VI - Ascension Island;

VII - The Commonwealth of the Bahamas;

VIII - Bahrain;

IX - Barbados;

X - Belize;

XI - Bermuda Islands;

XII - Brunei;

XIII - Campione D' Italia;

XIV - Channel Islands (Alderney, Guernsey, Jersey and Sark);

XV - Cayman Islands;

XVI - Cyprus;

XVII - Singapore;

XVIII - Cook Islands;

XIX - The Republic of Costa Rica;

XX - Djibouti;

XXI - Dominica;

XXII - United Arab Emirates;

XXIII - Gibraltar;

XXIV - Granada;

XXV - Hong Kong;

XXVI - Kiribati;

XXVII - Labuan;

XXVIII - Lebanon;

XXIX - Liberia;

XXX - Liechtenstein;

XXXI - Macau;

XXXII - Madeira Island;

XXXIII - Maldives;

XXXIV - Isle of Man;

XXXV - Marshall Islands;

XXXVI - Mauritius Island;

XXXVII - Monaco;

XXXVIII - Montserrat Island;

XXXIX - Nauru;

XL - Niue Island;

XLI - Norfolk Island;

XLII - Panama;

XLIII - Pitcairn Islands;

XLIV - French Polynesia;

XLV - Qeshm Island;

XLVI - American Samoa;

XLVII - Western Samoa;

XLVIII - San Marino;

XLIX - Saint Helena Island;

L - Saint Lucia;

LI - The Federation of Saint Kitts and Nevis;

LII - Saint Pierre and Miquelon Island;

LIII - Saint Vincent and the Grenadines;

LIV - Seychelles;

LV - Solomon Islands;

LVI - Saint Kitts and Nevis;

LVII - Swaziland;

LVIII - (Revoked by RFB Regulatory Instruction No. 1,474, of June 18, 2014)

LIX - Sultanate of Oman;

LX - Tonga;

LXI - Tristan da Cunha;

LXII - Turks and Caicos Islands;

LXIII - Vanuatu;

LXIV - U.S. Virgin Islands;

LXV - British Virgin Islands.

Art. 2 Privileged tax regimes are:

I - (Revoked by RFB Executive Declaratory Act No. 3, of March 25, 2011)

II - under the laws of Uruguay, the tax regime applicable to legal entities incorporated as "Sociedades Financeiras de Inversão (SAFIs)") until December 31, 2010;

III - under the laws of Denmark, the tax regime applicable to legal entities incorporated as holding companies that do not carry out substantive economic activity;
(Wording by RFB Normative Instruction No. 1,045, of June 23, 2010)

IV - under the laws of the Netherlands, the tax regime applicable to legal entities incorporated as holding companies that do not carry out substantive economic activity;
(Wording by RFB Normative Instruction No. 1,045, of June 23, 2010)

V - under the laws of Iceland, the tax regime applicable to legal entities incorporated as International Trading Companies (ITCs);

VI - (Wording by RFB Normative Instruction No. 1,474, of June 18, 2014)

VII - under the laws of the United States of America, the tax regime applicable to legal entities incorporated as state Limited Liability Companies (LLCs), in which the equity interest is held by nonresidents not subject to U.S. federal income tax; or

VIII - under the laws of Spain, the tax regime applicable to legal entities incorporated as Entidad de Tenencia de Valores Extranjeros (ETVEs);

IX - under the laws of Malta, the tax regime applicable to legal entities incorporated as International Trading Companies (ITCs) and International Holding Companies (IHCs).

X - with reference to Switzerland, the tax regimes applicable to legal entities incorporated as holding companies, domiciliary companies, auxiliary companies, mixed companies and administrative companies, whose tax treatment results in a combined Corporate Income Tax (IRPJ) levy lower than twenty percent (20%), pursuant to federal, cantonal and municipal laws, as well as the tax regime applicable to other legal types of legal entities, by means of rulings issued by tax authorities, which results in a combined IRPJ levy lower than twenty percent (20%), pursuant to federal, cantonal and municipal laws.
(Included by RFB Normative Instruction No. 1,474, of June 18, 2014)

Art. 3 This Normative Instruction shall enter into force on the date of its publication.

Art. 4 SRF Normative Instruction No. 188, of August 6, 2002, is hereby revoked.
OTACÍLIO DANTAS CARTAXO