Brazil and the UK have signed a double taxation agreement (DTA), the first comprehensive tax agreement between the two countries.

Once it has entered into effect, the UK will have DTAs with seven out of the 10 most populous states in Latin America and the Caribbean.

In most cases, the agreement reduces rather than eliminates withholding taxes. Pension schemes are an exception to this general position – dividends and interest paid by a company resident in one contracting s...