(Hong Kong, 22nd) Brazil's Ministry of Finance plans to set up a tax advisor office in China, signaling Brazil's increasing emphasis on its largest trading partner amid rising global tensions.
According to Reuters on Tuesday (July 22), a draft presidential decree and preparatory documents indicate that the main reasons for establishing the tax advisor office in China are the increasing complexity of China-Brazil trade and the necessity to strengthen cooperation on tax and customs matters.
The Brazilian Ministry of Finance stated that this tax advisor office will play a "strategic role" in international cooperation, assisting in combating tax and customs violations through information exchange, and providing technical guidance on Brazilian law to foreign investors and overseas citizens to enhance legal certainty and the business environment.
The Ministry revealed that discussions about establishing the tax advisor office in Beijing began in 2023, and it has undergone multiple rounds of technical review by government departments since January 6 of this year.
Reuters pointed out that Brazil's announcement to set up a tax office in China comes at a time when trade tensions between the South American nation and the United States are rising.
President Trump of the United States has announced a 50% tariff hike on Brazilian imports, linking the move to former President Bolsonaro's judicial cases, further narrowing Brazil's negotiating space with the US.
On July 18, Brazil's Federal Supreme Court ruled that Bolsonaro had engaged in judicial coercion, obstructed justice, and openly endangered national sovereignty. However, Trump argued that this was the Lula administration conducting a political witch hunt against Bolsonaro, who is an admirer of Trump.
Meanwhile, Brazil's relationship with China continues to gain warmth. Since taking office in 2023, left-wing President Lula has met with Chinese President Xi Jinping three times, with the two countries agreeing to promote cooperation on transport infrastructure, including the "Transoceanic Railway" project connecting Brazil and the Chancay port in Peru, which is being developed under Chinese leadership.
Regarding why it has taken until now to establish a tax advisor office in China, the Brazilian Ministry of Finance responded that this move is not politically motivated, but rather based on the importance of bilateral trade and the need to deepen cooperation on tax and customs matters.
Currently, Brazil already has four overseas tax and customs advisor offices, located in Washington, Buenos Aires (established in 2000), and Asunción and Montevideo (established in 2002).
The Brazilian Ministry of Finance stated that this tax advisor office will play a "strategic role" in international cooperation, assisting in combating tax and customs violations through information exchange, and providing technical guidance on Brazilian law to foreign investors and overseas citizens to enhance legal certainty and the business environment.
The Ministry revealed that discussions about establishing the tax advisor office in Beijing began in 2023, and it has undergone multiple rounds of technical review by government departments since January 6 of this year.
Reuters pointed out that Brazil's announcement to set up a tax office in China comes at a time when trade tensions between the South American nation and the United States are rising.
President Trump of the United States has announced a 50% tariff hike on Brazilian imports, linking the move to former President Bolsonaro's judicial cases, further narrowing Brazil's negotiating space with the US.
On July 18, Brazil's Federal Supreme Court ruled that Bolsonaro had engaged in judicial coercion, obstructed justice, and openly endangered national sovereignty. However, Trump argued that this was the Lula administration conducting a political witch hunt against Bolsonaro, who is an admirer of Trump.
Meanwhile, Brazil's relationship with China continues to gain warmth. Since taking office in 2023, left-wing President Lula has met with Chinese President Xi Jinping three times, with the two countries agreeing to promote cooperation on transport infrastructure, including the "Transoceanic Railway" project connecting Brazil and the Chancay port in Peru, which is being developed under Chinese leadership.
Regarding why it has taken until now to establish a tax advisor office in China, the Brazilian Ministry of Finance responded that this move is not politically motivated, but rather based on the importance of bilateral trade and the need to deepen cooperation on tax and customs matters.
Currently, Brazil already has four overseas tax and customs advisor offices, located in Washington, Buenos Aires (established in 2000), and Asunción and Montevideo (established in 2002).