Argentina : Protocol to Tax Treaty with Brazil
In July 2017, Argentina and Brazil signed a dual-language protocol to the Argentina-Brazil double tax convention (1980). The language of the protocol will supersede the treaty’s current provisions. Under the protocol, there will be no limitation to withholding tax, as there is in source countries under the original treaty. The maximum rates under the protocol are:
- 10% or 15% on dividends
- 15% on interest
- 10% or 15% on royalties and technical services
The protocol generally adheres to OECD convention, with some exceptions, including:
- The protocol extends the concept of permanent establishment to insurance companies that collect premiums in the territory of a contracting state or insurance risks in that state through an agent other than one of an independent status.
- The protocol limits benefits.
- The protocol indicates that the treaty’s Article 12, on royalties, applies to income derived from the use or license to use software, income derived from the provision of international news and income derived from the provision of technical services and technical assistance.
Under the protocol, both countries will apply the credit method for the avoidance of double taxation.