2620 DOUBLE INCOME TAX-SHIPPING PROFITS-BRAZIL . Marcb a. Mal' 81, Bep- A b he T"T. • dSt ,.(A . ~.JB 'l .~J' tember 17,1929. rrangement etween t untte ates OJ merwa aflAJ, raZ?- proulAJ,'/,ng M;:W:&:~,Jo.21, jor reliej jrom dou.ble income tax on shipping profits. Effected by exchange oj notes, signed March 5,1929, May 31,1929, September 17, 1929, March 11, 1930, August 21, 1930, and September 1, 1930. The American Ambassador (Morgan) to the Brazilian lYinister jor Foreign Affairs (Alangabeira) [Extract1 No. 1419. AMERICAN EMBASSY, Double Income tax MR MINISTER' RIO DE JANEIRO, March 5,1929. on shipping profits. · • Reciprocal eump- The representative of the United States Shipping Board has called U~iy'nitedStatesand my attention to Article 6 of Executive Decree No. 5,623, of Decem- ber 29, 1928, by which His Excellency the President of the Republic sanctioned a law of Congress which "Reduces the duties on rolling and traction material for railroad and city transportation; alters the tax on paper for wrapping fruits; exempts from duties the importa- tion of gold in bars and coined; regulates the payment by 'exercicio findo' and adopts other measures." Article 6 of said Law states:
- 'Forei~n navigation companies are hereby exempted from income
tax, proVIded that the c,ountry in which their head office is located, grants exemption to Brazilian companies of the same character." According to the dispositions of Section 213(b)(8) of the Revenue Laws of the United States of 1924 and 1926 which were also included in the Revenue Law of the United States of 1928 in Section 212 (b) and 231(b): "(8) The income of a forei~er non-resident or of a foreign cor- poration which consists exclUSIvely of profit derived from a ship or ships operating under the laws of a foreign country which grants equal exemption to citizens of the United States and to corporations organized in the United States. . . ." It would appear that the above mentioned Revenue Laws of the United States contain a provision which would meet the terms of Article 6, of Executive Decree No. 5,623 of December 29, 1928, and that therefore I am justified in requesting Your Excellency's Govern- ment to exempt the United States Shipping Board from payment of the Brazilian Income tax. Accept, Excellency [etc.] HIS EXCELLENCY DR. OCTAVIO MANGABEIRA, Minister jor Foreign Affairs. EDWIN MOHGAN.
