No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Friday, October 24, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home IRS & Taxes

US Tax Treaty Network: Prioritizing Brazil and Singapore

by TheAdviserMagazine
4 months ago
in IRS & Taxes
Reading Time: 4 mins read
A A
US Tax Treaty Network: Prioritizing Brazil and Singapore
Share on FacebookShare on TwitterShare on LInkedIn


Because taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities.
 systems in countries differ, tax treaties can help minimize distortions and obstacles affecting cross-border investment. The United States should focus on expanding its treaty network to minimize friction for US companies earning profits abroad and maintaining attractiveness for foreign companies investing in the US.

In the absence of a tax treaty, double taxationDouble taxation is when taxes are paid twice on the same dollar of income, regardless of whether that’s corporate or individual income.
 can occur, limiting returns to shareholders or profits that companies can invest either in the US or abroad.

According to the  2024 version of our International Tax Competitiveness Index, the average size of a tax treaty network is 75 countries, and the US ranks 25th (out of 38 OECD countries) with 66 treaties.

A recent National Foreign Trade Council survey of large multinational companies reveals that Brazil and Singapore are the top priorities for cross-border tax treaties. The US doesn’t have a tax treaty with either. At the same time, the 2025 survey shows that Switzerland and India have gained notable importance among treaty priorities. Unlike Brazil and Singapore, the US already maintains treaties with Switzerland and India, but these are increasingly seen as in need of modernization.

Respondents also identified reducing withholdingWithholding is the income an employer takes out of an employee’s paycheck and remits to the federal, state, and/or local government. It is calculated based on the amount of income earned, the taxpayer’s filing status, the number of allowances claimed, and any additional amount of the employee requests.
tax rates on royalties, improving transfer pricing provisions, and strengthening mutual agreement procedures as top negotiation objectives.

Eliminating double taxation and other distortions can facilitate business activity and contribute to more efficient tax regimes. While the United States has concluded double taxation agreements (DTAs) with countries such as Switzerland and India, no such agreements exist with Brazil or Singapore. This absence of DTAs can lead to tax uncertainty and the risk of double taxation, which may discourage cross-border investment and complicate tax compliance for multinational enterprises.

An important development in this context was Brazil’s recent reform of its transfer pricing rules, aligning them with OECD standards and thus moving closer to international best practices. Enacted in June 2023 and effective as of January 1, 2024, the reform introduced the arm’s length principle into Brazilian law. Even without a tax treaty between the US and Brazil, a common approach to calculating profits in cross-border transactions will reduce businesses’ challenges when determining the tax impact of profitable projects in Brazil. Nevertheless, a treaty would offer additional clarity and legal certainty to facilitate business operations in both countries. The absence of a tax treaty can increase complexity and distortions, such as double taxation.

In 2023, the US-Chile comprehensive income tax treaty successfully went into effect. This treaty reduces tax-related barriers to cross-border investments and ensures a more coherent and pro-growth international tax environment. It eliminates double taxation and facilitates the daily operations of companies in both countries. Importantly, it remains the only new US tax treaty to have gone into effect in recent years, and no others have been concluded since.

The National Foreign Trade Council’s survey shows that the private sector recognizes the economic value of treaties as an instrument to increase tax certainty and decrease distortions.

Brazil and Singapore remain top priorities for U.S. treaty negotiations. For both countries, reducing withholding tax rates on royalties emerged as a critical concern—emphasizing the need to eliminate barriers to cross-border innovation and intellectual property-related transactions. The United States should prioritize expanding its treaty network, especially with partners like Singapore and Brazil, to facilitate global investment flows. Removing barriers to cross-border investment is crucial, especially as international changes like the implementation of the global minimum tax and tensions over cross-border taxation undermine the long-term stability of tax rules.

While Brazil and Singapore top the list of priorities, the increased attention to Switzerland and India highlights the need to modernize existing agreements. The US–Switzerland tax treaty has already seen meaningful steps toward reform. Following the inception of a 2009 protocol in 2019, which introduced mandatory arbitration and enhanced information exchange, both governments have moved to modernize the treaty further. In late 2022, a US Treasury official publicly confirmed that negotiations were underway to comprehensively revise the 1996 agreement. The negotiations aim to reduce withholding taxes on intercompany dividends, update the Limitation on Benefits (LOB) clause, and improve treaty access for pension funds and multinational businesses.

In contrast, the US–India tax treaty, in force since 1991, has not been revised and is widely regarded as outdated. It features relatively high withholding tax rates and lacks a binding arbitration mechanism under its Mutual Agreement Procedure (MAP). Although no formal negotiations have been announced, growing pressure from the business community and recognition of the treaty’s limitations have placed it under increased scrutiny. Key reform goals include reducing tax barriers, modernizing LOB provisions, and introducing binding arbitration to resolve disputes more efficiently.

Expanding and updating the US tax treaty network—both by forging new agreements and modernizing existing ones—is vital to maintaining the country’s competitiveness in a rapidly evolving global tax landscape.

Stay informed on the tax policies impacting you.

Subscribe to get insights from our trusted experts delivered straight to your inbox.

Subscribe

Share this article

Twitter
LinkedIn
Facebook
Email



Source link

Tags: BrazilNetworkprioritizingSingaporetaxtreaty
ShareTweetShare
Previous Post

Watch Fed Chair Jerome Powell testify live before Senate banking panel

Next Post

How Automation Makes Investors More Money

Related Posts

edit post
7 Red Flags the IRS Spots Fast |

7 Red Flags the IRS Spots Fast |

by TheAdviserMagazine
October 23, 2025
0

Why Does Bookkeeping Matter So Much for Landlords? For real estate investors, bookkeeping is more than tracking numbers—it’s about protecting...

edit post
2025 Spanish Regional Tax Competitiveness Index

2025 Spanish Regional Tax Competitiveness Index

by TheAdviserMagazine
October 23, 2025
0

Below is an excerpt of the 2025 Spanish Regional TaxA tax is a mandatory payment or charge collected by local,...

edit post
7 Organizational Tips to Make Tax Filing Easy

7 Organizational Tips to Make Tax Filing Easy

by TheAdviserMagazine
October 22, 2025
0

There are often two types of tax filers: Those who neatly file their tax information and receipts away in color-coded...

edit post
Ashley Carroll: The ROI of Relationships

Ashley Carroll: The ROI of Relationships

by TheAdviserMagazine
October 22, 2025
0

In this episode of the Canopy Practice Success Podcast, host KC Brothers talks with Ashley Carroll, founder of Operations House,...

edit post
The Tax Season Switch That Changed Everything

The Tax Season Switch That Changed Everything

by TheAdviserMagazine
October 22, 2025
0

  Profile For 46 years, Financial Solution Advisors has thrived as a boutique firm in Jacksonville, Florida, built on deep...

edit post
Why most tax departments aren’t using AI yet

Why most tax departments aren’t using AI yet

by TheAdviserMagazine
October 22, 2025
0

  Highlights:  The adoption paradox — While 67% of corporate tax departments aren’t using GenAI yet, 57% implementing new technologies plan...

Next Post
edit post
How Automation Makes Investors More Money

How Automation Makes Investors More Money

edit post
10 Monthly Dividend Stocks To Sell

10 Monthly Dividend Stocks To Sell

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
Polyamory’s Secret Money Traps: How Multiple Partners Could Cost You Thousands (And How to Avoid Them)

Polyamory’s Secret Money Traps: How Multiple Partners Could Cost You Thousands (And How to Avoid Them)

0
edit post
Are Air Traffic Controllers the Key to Ending the Shutdown?

Are Air Traffic Controllers the Key to Ending the Shutdown?

0
edit post
16 Innovative Approaches to Attract Angel Investors and Stand Out from Other Founders

16 Innovative Approaches to Attract Angel Investors and Stand Out from Other Founders

0
edit post
Why Every Research Project Should Begin With the ‘Why’

Why Every Research Project Should Begin With the ‘Why’

0
edit post
What financial advisors should know about heirs’ property

What financial advisors should know about heirs’ property

0
edit post
With  trillion pay package on the line, Elon Musk blasts influential firms telling shareholders to reject it: ‘Those guys are corporate terrorists’

With $1 trillion pay package on the line, Elon Musk blasts influential firms telling shareholders to reject it: ‘Those guys are corporate terrorists’

0
edit post
US Dollars Go On-Chain as Uphold and Vast Bank Fuse Banking With Blockchain

US Dollars Go On-Chain as Uphold and Vast Bank Fuse Banking With Blockchain

October 23, 2025
edit post
Goldman aims for ‘PE returns’ with new ETF

Goldman aims for ‘PE returns’ with new ETF

October 23, 2025
edit post
Polyamory’s Secret Money Traps: How Multiple Partners Could Cost You Thousands (And How to Avoid Them)

Polyamory’s Secret Money Traps: How Multiple Partners Could Cost You Thousands (And How to Avoid Them)

October 23, 2025
edit post
How advisors are using AI without explicit SEC guidance

How advisors are using AI without explicit SEC guidance

October 23, 2025
edit post
What financial advisors should know about heirs’ property

What financial advisors should know about heirs’ property

October 23, 2025
edit post
Kraken Posts Record Revenue in Q3 Amid Expansion, IPO Buzz

Kraken Posts Record Revenue in Q3 Amid Expansion, IPO Buzz

October 23, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • US Dollars Go On-Chain as Uphold and Vast Bank Fuse Banking With Blockchain
  • Goldman aims for ‘PE returns’ with new ETF
  • Polyamory’s Secret Money Traps: How Multiple Partners Could Cost You Thousands (And How to Avoid Them)
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.