CRS automatic exchange implementing (Decree 8,842/2016)
On August 30, 2016, the Brazilian Government enacted the Decree 8,842/2016 approving the OECD’s Multilateral Convention on Mutual Assistance in Tax Matters, for purposes of implementing an international agreement for the automatic exchange of information under the common reporting standard (CRS) regime.
The Multilateral Convention foresees administrative cooperation to combating tax avoidance and evasion related to transactions carried out from 1st January, 2017.
Automatic exchange of information
The automatic exchange of information will be implemented according to the following formats:
• Standard for Automatic Exchange of Financial Account Information in Tax Matters - “CRS – Common Reporting Standard.
• Country-by-country reporting – CbC.
• Exchange on tax rulings – ETR.
Although Brazilian Tax Authorities have not released an specific internal guidance in connection with CRS reporting it is important to highlight that it is expected that the reporting requirements in Brazil will follow the FATCA reporting mechanism, in Brazil known as e-Financeira.
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