Imagine a Brazilian company with operations in Norway. Without this agreement, the profits earned in Norway could be taxed there and again in Brazil, increasing costs and tax complexity. Under the new regulation, the company will only pay the tax difference in Brazil if the Norwegian tax rate is lower than Brazil’s. This measure simplifies tax management, providing a more predictable and less costly business environment.

 

Security and predictability for investors

 

The agreement is also a significant attraction for investors, promoting greater economic integration between the two countries. Norway invested around US$ 9.3 billion in Brazil in 2020, and bilateral trade reached US$ 1.8 billion in 2021. This new scenario creates a more predictable environment for future transactions, making tax planning easier and encouraging business growth between Brazil and Norway.

 

Opportunities ahead

 

The agreement is currently awaiting a vote in the Chamber of Deputies. Once approved, it will mark a new chapter in the commercial relationship between the two countries. Companies already doing business or planning to explore new opportunities in the Norwegian market should prepare to take full advantage of the benefits this treaty offers. Now is the time to plan for operational expansion with more security and tax efficiency.

 

read also: Tax Planning for BET Companies

 

Conclusion: a clear path for growth with CLM Controller

 

The double taxation agreement between Brazil and Norway opens doors to a new era of economic cooperation, creating a more favorable environment for companies and investors. By reducing the tax burden and simplifying processes, this treaty not only facilitates existing business but also encourages new investments. In this context, having efficient tax management is crucial, and CLM Controller stands out in this area.