Brazil and the United States do not have a treaty to avoid weak weakness, which generates additional costs for companies and professionals working between the two countries. Without this agreement, investments, businesses and transfers become more expensive and bureaucratic.
The question is due to the recent changes in the Brazilian and American tax rules. Experts assess that double buses cause legal uncertainty and generate obstacles to international investments and employment.
The weak double occurs when two of the two general entities impose taxes on the taxpayer, whether the person or work, on the same subject. The Veirano Advogados Fernanda Kotzias states that double marital is within the legislation.
He says: “At the international level, the tax duplication occurs on income and income, so it is a problem that often affects investment, profit distributions, services trade and payment of royalties.”
A doctorate in the International Trade Law of the PUC-SP (PUC-SP) is that trade in goods is not subject to dual credit due to the high level of international cooperation and obligations between countries and that the bases in general are more homogeneous and moderate.
Kotzias explains a position on the quotas: “When it comes to income, it is common for the country of origin to keep taxes on the source, as a way to avoid international tax evasion, while the destination country imposes its bases and efficiency, and thus requires the tax again.”
The tax field coordinator of the Advogados, Mateus Campos, details that this type of taxes enter the discussion of those who are efficient to impose taxes on income, for example, due to the overlapping of tax concepts.
CAMPOS states that concept Source paymentAccording to the nation in which the source of income is subject to the tax responsible for collection, it escalates in the concept of comprehensive income tax, in which all income from the tax resident of the country is subject to income tax.
Jurisprudence argues that double fetch has returned to the debate due to tax changes to both the United States and Brazil. He says: “In recent years, there have been changes in American legislation for the purpose of admitting taxes paid in other countries, especially those that are not treated with it, which may harm the shareholders in these countries.”
“Since the United States is a relevant commercial partner, the modern protection measures imposed by the Trump administration, international investments and bilateral interests with the United States, the approach to entry of tax reform changes as well as the fact that RFB announced, in March 2025, in the IRPF rules related to investment permit to invest in the scale in the basin,” added the Veirano Advogados partner.
Kotzias remembers that the first attempt in the agreements to avoid weakness and the United States was made in 1967, when countries reached an understanding. However, the talks did not advance due to the US Congress disputes over its content and the Brazil condition to maintain a sentence that would allow credit to the exempt tax amount.
“The private sector, which seeks to benefit from the approach between the two countries during the first period of Trump and the Bolsonaro government, has sought to strengthen discussions again, which received support from many relevant associations, but the agreement was not complete,” the lawyer says.
The expert adds that the best output strategy is agreements to prevent dual duality, but the solution depends on the political will of governments and mobilization of the private sector.
Although the solutions are not signed, the tax area coordinator at the defense office of Barretto is advised that Advogados is that companies and investors have appropriate and legal tax planning.
“The first step is to verify the existence of mechanisms that can be implemented to enable the identification of taxes imposed in the other country, which can be achieved in both treaties and in the provisions of financial ideals. If these options are not available, there is an option to review the structure of the process, in order to improve and form a more consistent tax,”
