No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Wednesday, October 1, 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
3 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
Audit client acceptance and continuance 

Audit client acceptance and continuance 

by TheAdviserMagazine
September 30, 2025
0

How to know when to accept clients and when to terminate the relationship. Highlights Audit firms must follow PCAOB guidelines,...

edit post
What is an Offer in Compromise (OIC)?

What is an Offer in Compromise (OIC)?

by TheAdviserMagazine
September 30, 2025
0

Key Takeaways: An Offer in Compromise allows taxpayers to settle IRS debts for less than the full amount owed, providing...

edit post
Why Time Tracking Software Is a Game-Changer for Growing Accounting Firms in 2025

Why Time Tracking Software Is a Game-Changer for Growing Accounting Firms in 2025

by TheAdviserMagazine
September 30, 2025
0

If you run an accounting firm that’s grown beyond a handful of staff, you already know this: time is your...

edit post
How Investors Protect Assets from Charging Orders |

How Investors Protect Assets from Charging Orders |

by TheAdviserMagazine
September 30, 2025
0

The biggest threat to real estate investors isn’t always the next market crash—it’s a lawsuit. If a judgment creditor wins...

edit post
How integrated global trade content transforms compliance

How integrated global trade content transforms compliance

by TheAdviserMagazine
September 30, 2025
0

Highlights In today’s volatile tariff landscape, global trade compliance has evolved from a back-office task into a critical strategic function,...

edit post
Who Has the Authority to Levy Tariffs?

Who Has the Authority to Levy Tariffs?

by TheAdviserMagazine
September 29, 2025
0

The US Supreme Court will hear oral arguments on November 5, to determine whether the President’s emergency powers under the...

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
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Who Needs a Trust Instead of a Will in North Carolina?

Who Needs a Trust Instead of a Will in North Carolina?

September 1, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Spotify founder Ek to step down as CEO to focus on long-term strategy

Spotify founder Ek to step down as CEO to focus on long-term strategy

0
edit post
Financial Planning Doesn’t Have to Be Intimidating

Financial Planning Doesn’t Have to Be Intimidating

0
edit post
A Student’s Guide to Success: Six Strategies to Reduce Team Conflict – Faculty Focus

A Student’s Guide to Success: Six Strategies to Reduce Team Conflict – Faculty Focus

0
edit post
Dollar claws back losses from U.S. government shutdown, turns higher

Dollar claws back losses from U.S. government shutdown, turns higher

0
edit post
US markets regulators start shuttering as government shutdown cuts federal funding

US markets regulators start shuttering as government shutdown cuts federal funding

0
edit post
Shutdown, Clampdown, Clownshow or Horror Movie?

Shutdown, Clampdown, Clownshow or Horror Movie?

0
edit post
Dollar claws back losses from U.S. government shutdown, turns higher

Dollar claws back losses from U.S. government shutdown, turns higher

October 1, 2025
edit post
Financial Planning Doesn’t Have to Be Intimidating

Financial Planning Doesn’t Have to Be Intimidating

October 1, 2025
edit post
Shutdown, Clampdown, Clownshow or Horror Movie?

Shutdown, Clampdown, Clownshow or Horror Movie?

October 1, 2025
edit post
XRP Flips Green For First Time Since 2017, Pundit Predicts 500% Rally

XRP Flips Green For First Time Since 2017, Pundit Predicts 500% Rally

October 1, 2025
edit post
AI godfather warns humanity risks extinction by hyperintelligent machines with their own ‘preservation goals’ within 10 years

AI godfather warns humanity risks extinction by hyperintelligent machines with their own ‘preservation goals’ within 10 years

October 1, 2025
edit post
AI Agents Have Entered the Real World

AI Agents Have Entered the Real World

October 1, 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

  • Dollar claws back losses from U.S. government shutdown, turns higher
  • Financial Planning Doesn’t Have to Be Intimidating
  • Shutdown, Clampdown, Clownshow or Horror Movie?
  • 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.