Luxembourg Holding Company Regime is excluded from Brazilian ...
Luxembourg Holding Company Regime is excluded from Brazilian ...
Luxembourg Holding Company Regime is excluded from Brazilian ...
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31 March 2011<br />
International<br />
Tax Alert<br />
For more information on<br />
Ernst & Young LLP’s<br />
International Tax Services:<br />
• Follow us on Twitter at:<br />
twitter.com/EYIntlTax<br />
• V<strong>is</strong>it us at:<br />
http://www.ey.com/GL/en/<br />
Services/Tax/International-Tax<br />
<strong>Luxembourg</strong> <strong>Holding</strong><br />
<strong>Company</strong> <strong>Regime</strong> <strong>is</strong><br />
<strong>excluded</strong> <strong>from</strong> <strong>Brazilian</strong><br />
Privileged Tax <strong>Regime</strong> l<strong>is</strong>t<br />
On 28 March 2011, Brazil’s Federal Revenue Department <strong>is</strong>sued a new<br />
regulation (ADE RFB 03/2011) removing <strong>Luxembourg</strong> holding companies<br />
<strong>from</strong> the <strong>Brazilian</strong> l<strong>is</strong>t of privileged tax regimes.<br />
The privileged tax regime l<strong>is</strong>t was introduced by Normative Instruction<br />
1,037/2010. Since its publication, various countries (including Spain and<br />
the Netherlands) have challenged their l<strong>is</strong>ted status by filing a formal claim<br />
with the <strong>Brazilian</strong> Federal Revenue Department. Although in some cases<br />
the claims have resulted in a temporary suspension of the applicability<br />
of the Normative Instruction, <strong>Luxembourg</strong> was the first jur<strong>is</strong>diction to<br />
effectively be <strong>excluded</strong> <strong>from</strong> the l<strong>is</strong>t.<br />
Although the reasoning for the aforementioned exclusion <strong>is</strong> based on<br />
the extinction of the so called “1929 <strong>Holding</strong> <strong>Company</strong> <strong>Regime</strong>” (and its<br />
arguably provided tax benefits), the ADE <strong>excluded</strong> Luxemburg holding<br />
companies in general <strong>from</strong> inclusion on the l<strong>is</strong>t as a privileged tax regime,<br />
without making exceptions.<br />
Therefore, unless a new regulation <strong>is</strong> <strong>is</strong>sued, any Luxemburg holding<br />
company <strong>is</strong> no longer part of the <strong>Brazilian</strong> privileged tax regime l<strong>is</strong>t.
For additional information with respect to th<strong>is</strong> Alert, please contact the following:<br />
Ernst & Young Serviços Tributários S.S., São Paulo<br />
• Gil F. Mendes +55 11 2573 3466 gil.f.mendes@br.ey.com<br />
• Luiz S. Vieira +55 11 2573 3571 luiz.s.vieira@br.ey.com<br />
• Jêrome van Staden +55 11 2573 3545 jerome-van.staden@br.ey.com<br />
• Marcelo F. Lira +55 11 2573 3069 marcelo.f.lira@br.ey.com<br />
Ernst & Young LLP, <strong>Brazilian</strong> Tax Desk, London<br />
• Ricardo Moura + 44 20 7951 6907 rmoura@uk.ey.com<br />
Ernst & Young LLP, <strong>Brazilian</strong> Tax Desk, New York<br />
• Simone Frizzo +1 212 773 2583 simone.frizzo@ey.com<br />
Ernst & Young LLP, Latin American Business Center, Miami<br />
• Terri Grosselin +1 305 415 1344 terri.grosselin@ey.com<br />
International Tax Alert<br />
2
International Tax Services<br />
• Global ITS, Jim Tobin, New York<br />
• Americas, Jeffrey Michalak, Detroit<br />
• Asia Pacific, Alice Chan, Shanghai<br />
• Europe, Middle East, India and Africa, Alex Postma, London<br />
• Japan, Kai Hielscher, Tokyo<br />
• Latin America, Alberto Lopez, New York<br />
• Argentina Carlos Casanovas Buenos Aires<br />
• Australia Daryn Moore Sydney<br />
• Austria Roland Rief Vienna<br />
• Belgium Herwig Joosten Brussels<br />
• Brazil Gil Mendes Sao Paulo<br />
• Canada George Guedikian Toronto<br />
• Central America Rafael Sayagues San José<br />
• Chile Osiel Gonzalez Santiago<br />
• China Becky Lai Beijing<br />
• Colombia Ximena Zuluaga Bogota<br />
• Czech Republic Libor Frýzek Prague<br />
• Denmark Niels Josephsen Soborg<br />
• Finland Katri Nygård Helsinki<br />
• France Claire Acard Par<strong>is</strong><br />
Rég<strong>is</strong> Houriez Par<strong>is</strong><br />
• Germany Stefan Koehler Frankfurt<br />
• Hong Kong Chr<strong>is</strong> Finnerty Hong Kong<br />
• Hungary Botond Rencz Budapest<br />
Balazs Szolgyemy Budapest<br />
• India Vijay Iyer Bangalore<br />
• Ireland Kevin McLoughlin Dublin<br />
• Israel Sharon Shulman Tel Aviv<br />
• Italy Mario Ferrol Milan<br />
Gaetano Pizzitola Rome<br />
• Japan Kai Hielscher Tokyo<br />
• Korea Kyung-Tae Ko Seoul<br />
• <strong>Luxembourg</strong> Frank Muntendam <strong>Luxembourg</strong><br />
• Malaysia Hock Khoon Lee Kuala Lumpur<br />
• Mexico Koen van ‘t Hek Mexico City<br />
• Middle East Tobias Lintvelt Abu Dhabi<br />
• Middle East Michelle Kotze Dubai<br />
• Netherlands Johan van den Bos Amsterdam<br />
• Norway Oyvind Hovland Oslo<br />
• Peru Roberto Cores Lima<br />
• Philippines Ma Fides Balili Makati City<br />
• Poland Andrzej Broda Warsaw<br />
• Portugal Antonio Neves L<strong>is</strong>bon<br />
• Russia Vladimir Zheltonogov Moscow<br />
• Singapore Andy Baik Singapore<br />
• South Africa Corlie Hazell Johannesburg<br />
• Spain Federico Linares Madrid<br />
• Sweden Erik Hultman Stockholm<br />
• Switzerland Markus F. Huber Zurich<br />
• Taiwan Jennifer Williams Taipei<br />
• Thailand Anthony Loh Bangkok<br />
• Turkey Feridun Gungor Istanbul<br />
• United Kingdom Matthew Mealey London<br />
Jim Charlton London<br />
• United States Jeffrey Michalak Detroit<br />
• Venezuela Jose Velazquez Caracas<br />
• Vietnam Vu Huong Hanoi<br />
3 International Tax Alert<br />
Ernst & Young<br />
Assurance | Tax | Transactions | Adv<strong>is</strong>ory<br />
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International Tax Services<br />
About Ernst & Young’s International Tax<br />
services practice<br />
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www.ey.com<br />
© 2011 EYGM Limited.<br />
All Rights Reserved.<br />
EYG no. CM2331<br />
Th<strong>is</strong> publication contains information in summary form<br />
and <strong>is</strong> therefore intended for general guidance only. It<br />
<strong>is</strong> not intended to be a substitute for detailed research<br />
or the exerc<strong>is</strong>e of professional judgment. Neither EYGM<br />
Limited nor any other member of the global Ernst &<br />
Young organization can accept any responsibility for<br />
loss occasioned to any person acting or refraining <strong>from</strong><br />
action as a result of any material in th<strong>is</strong> publication. On<br />
any specific matter, reference should be made to the<br />
appropriate adv<strong>is</strong>or.
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