Tax Cooperation Policy Brief 5, December 2018

The Definition and Treatment of Tax Havens in Brazilian Tax  Law between 1995 and 2015

By Alexandre Akio Lage Martins

Over the years, a number of ‘tax haven lists’ have been created at the national and international level, with varying definitions and criteria used to identify jurisdictions falling under their scope. This policy brief presents the experience of Brazil in compiling their national list of tax havens, the road map they followed for its implementation, and the impact that it has had on their foreign investment flows. It also provides the lessons learnt from this experience, which can be positively utilized by other developing countries.

Ces dernières années, plusieurs listes nationales et internationales de paradis fiscaux ont été établies, dans lesquelles les définitions et les critères utilisés pour déterminer les juridictions qui entrent dans leur champ d’application varient. Le présent rapport se penche sur l’expérience du Brésil en la matière et examine le processus que le pays a suivi pour élaborer sa liste nationale de paradis fiscaux et les conséquences qu’elle a eues sur les investissements étrangers. Le rapport présente également les enseignements tirés de l’expérience du Brésil, qui peuvent servir aux autres pays en développement.

En los últimos años se han creado tanto en el ámbito nacional como internacional una serie de «listas de paraísos fiscales» que hacen uso de diferentes definiciones y criterios para determinar las jurisdicciones que entran en su ámbito de aplicación. Este informe sobre políticas se centra en la experiencia del Brasil al respecto y se examina el proceso seguido por el país para elaborar su lista de paraísos fiscales y las consecuencias de esta lista para la inversión extranjera. Asimismo, se exponen las lecciones de la experiencia del Brasil, que pueden ser útiles para otros países en desarrollo.

This brief is part of the South Centre’s policy brief series focusing on tax policies and the  experiences in international tax cooperation of developing countries.

Efforts to reform international cooperation in tax matters are exhibiting a distinct acceleration.  The direction of change must recognize and incorporate innovations in developing country policies and approaches, otherwise the outcomes will obstruct practical paths to development.

The policy brief series is intended as a tool to assist in further dialogue on needed reforms.

*** The views contained in the policy briefs are personal to the authors and do not represent the institutional views of the South Centre or its Member States.

Download the tax cooperation policy brief below :

The Definition and Treatment of Tax Havens in Brazilian Tax Law between 1995 and 2015