Intertax
Volume 49, Issue 8/9 (2021) pp. 674 – 690

https://doi.org/10.54648/taxi2021066

Abstract

The qualification of income derived from technical services in Brazilian double tax treaties has always been surrounded by significant controversy between tax authorities and taxpayers. This agitation is exacerbated by the challenges inherent to the taxation of the digital economy and its proposed alternatives. The present study aims to examine the possible impacts of including Article 12B, the recent United Nations (UN) proposal for the taxation of the digital economy, in the qualification of technical services in Brazil. 

This objective demands a brief historical incursion into the troubled qualification of technical services in Brazil and an overview of the new Article 12B of the UN Model Convention. In addition, the possible impacts of the adoption of such a provision in the Brazilian scenario will be addressed and therefore expose the primary aspects of this new proposal. Ultimately, some conclusions are presented to trace a horizon around the Brazilian service taxation policy in the context of the digital economy.

Extract

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