Fabíola Costa Girão and Andrea de O. Ramos Puppi of Machado and Associates discuss.
Pursuant to these rules, Brazilian legal entities must comply with certain debt/equity ratios to be able to deduct interest paid, or credited, to related parties, residents in tax havens or non-residents benefitting from preferred tax regimes, when calculating their corporate income tax (CIT) and social contribution on net profits (SCNP).