Federal Revenue issues Interpretive Declaratory Act on taxation of income earned by foreign investor

Federal Revenue Secretariat of Brazil (RFB) published the Interpretive Declaratory Act RFB 5/2019, on Dec-20-2019, clarifying the exemption for foreign investors.

It is stablished that the origin of the investment, for the special taxation regime application purposes provided for in Article 88 to 98 of Normative Instruction 1.585/2015, will be determined based on the jurisdiction of the direct investor in the Country, except in cases of intent, fraud or simulation. Thus, the identification of the direct investor, the fund shareholder, is enough to grant the benefit.