The Rules Recommended by Pillar Two and their Relationship with the Brazilian Legal System

Authors

DOI:

https://doi.org/10.46801/2595-7155.12.6.2023.2365

Keywords:

international tax, Pillar Two, equality, net income

Abstract

The article assesses the validity of the domestic rules (Income Inclusion Rule – IIR and Undertaxed Profits Rules – UTPR) recommended by the OECD/G20, in the Pillar Two, in the light of the Brazilian legal system, and concludes that they are incompatible due to the opposition to the jurisdiction rule for income taxation in Brazil and the unjustified limitation to the principle of equality. It is also concluded that the IIR violates article 7(1) of the tax treaties, while the UTPR may violate said article 7(1) in specific cases. Furthermore, no violation was identified by the UTPR of articles 9(1) and 24(4) of the tax treaties.

Author Biography

Leonardo Aguirra de Andrade, Universidade de São Paulo

Mestre e Doutorando em Direito Tributário na USP.

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Published

2024-01-16

How to Cite

Andrade, L. A. de. (2024). The Rules Recommended by Pillar Two and their Relationship with the Brazilian Legal System. RDTI Atual, (12), 133–219. https://doi.org/10.46801/2595-7155.12.6.2023.2365

Issue

No. 12 (2023)

Section

Doutrina Nacional (Double Peer Reviewed)

License

Copyright (c) 2024 Leonardo Aguirra de Andrade

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

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