During MERCOSUR summit, on July 21st 2017, in Mendoza, Argentina, the authorities of Argentina and Brazil signed an amendment protocol to the treaty to avoid double taxation and prevent tax evasion between said countries (the "Protocol").
The main amendments of the Protocol include the introduction of provisions that modify the mechanism to avoid double taxation, the inclusion of property tax, the introduction of provisions aimed at avoiding the misuse of the treaty and the information exchange.
Currently, an Argentine company that wants to export its services to Brazil must pay taxes in both countries. Under this Protocol, said company will only pay taxes in the place where the services are rendered.
The authorities aim at fostering the export of knowledge-based services to Brazil. These include accounting...