On November 12^th, the Minister of Foreign Affairs of Brazil, Mr. Aloysio Nunes, and the Ambassador of the UAE in Brazil, Ms. Hafsa Al Ulama, signed the Convention Between Brazil and the United Arab Emirates to Eliminate Double Taxation on Income Tax and Prevent Tax Evasion and Avoidance. The agreement aims at creating a stable legal environment and encouraging trade and investment flows.

Due to double taxation, some investors used to use the system of other countries to invest in Brazil, which will not have to happen anymore. As a result, the document will encourage sovereign funds hosted in the UAE to invest in Brazil. In addition, by eliminating the need to triangulate investments through other countries, the signing of the convention will eliminate distortions in the bilateral investments, as well as prevent tax evasion and avoidance. The FDI stock of UAE investments in Brazil is US$ 70 million, whereas the FDI stock of Brazilian investments in the UAE is US$ 52 million.

It has indeed been a constructive week for the bilateral relations between Brazil and the UAE. On November 14^th, Ambassador Hafsa Al Ulama also met with the future president of Brazil, Mr. Jair Bolsonaro, who has recently been elected and will start his term on January 1^st, 2019. The focus of the meeting was on the enhancement of trade and cooperation between the two countries. Also on November 14th, Jair Bolsonaro announced the name of the next Minister of Foreign Affairs of Brazil, Ambassador Ernesto Araújo, who has been a diplomat for 29 years and will replace Mr. Aloysio Nunes.

Source: Ministry of Foreign Affairs of Brazil, Government of Brazil and Estadão