This week the Brazilian Senate approved on the Economic Affairs Commission (CAE) a proposal to change the criteria of jurisdictions classified as tax havens. Great news for the use of offshore structures for various purposes.
Brazil stood out from the rest of the world having a more severe classification and the new proposal aligns the country criteria to one used internationally thus avoiding distortions as was the case of Singapore which under Brazilian rule was considered a tax haven while the same jurisdiction was not part of the US list or the European Union list.
Under the new rule, the Brazilian list will no longer consider jurisdictions if they are not part of an independent and internationally recognized organization list. There is still the need for the Executive to appoint one or more bodies for validation.
As approved in a terminating character, if there is no recourse to vote on the floor, the PLS 275/14 follows directly to the House of Representatives.