PUBLICATION No. 172. Those who desire to file the Executive Agreement Series with the Treaty Series should file the present number after Treaty Series No. 824. UNITED STATES OF AMERICA The American Ambassador (Morgan) to the Brazilian Minister for Foreign Affairs (Mangabeira) [Extract] No. 1419. MR. MINISTER: AMERICAN EMBASSY RIO DE JANEIRO, March 5, 1929. The representative of the United States Shipping Board has called my attention to Article 6 of Executive Decree No. 5,623, of December 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 importation of gold in bars and coined; regulates the payment by 'exercicio findo' and adopts other measures." Article 6 of said Law states: "Foreign navigation companies are hereby exempted from income tax, provided that the country 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 foreigner non-resident or of a foreign corporation 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 Government to exempt the United States Shipping Board from payment of the Brazilian income tax.1 Accept, Excellency [etc.] HIS EXCELLENCY DR. OCTAVIO MANGABEIRA, Minister for Foreign Affairs. EDWIN MORGAN. 1 By a note dated January 19, 1929, the American Ambassador requested the Brazilian Government to exempt the Munson Steamship Line and the McCormick Steamship Company from taxation. The Brazilian Minister for Foreign Affairs (Mangabeira) to the American Ambassador (Morgan) NC/56 SENHOR EMBAIXADOR: MINISTERIO DAS RELAÇÕES EXTERIORES RIO DE JANEIRO, Em 31 de Maio de 1929. Em additamento á minha nota NC/29, de 16 de Abril ultimo,' sobre o pedido dessa Embaixada relativo á isenção de imposto sobre a renda para as companhias americanas de navegação, tenho a honra de inclusa remetter a Vossa Excellencia copia do Aviso do Ministerio da Fazenda dando solução ao mesmo pedido. Outrosim, cabe-me communicar a Vossa Excellencia que, nesta data, remetto novamente ao referido Ministerio a indicação da lei constante da nota n° 1419, de 5 de Março ultimo que, no seu paiz, assegura em reciprocidade ás companhias de navegação estrangeiras a isenção de pagamento do imposto de que se trata. Aproveito a opportunidade para reiterar a Vossa Excellencia os protestos da minha mais alta consideração. OCTAVIO MANGABEIRA. A SUA EXCELLENCIA O SENHOR EDWIN VERNON MORGAN, [Enclosure-Extract] The Brazilian Minister of Finance (Oliveira Botelho) to the Brazilian Minister for Foreign Affairs (Mangabeira) N. 33. MINISTERIO DOS NEGOCIOS DA FAZENDA Objecto: Isenção do imposto de renda para companhias SR. MINISTRO: . ., es dignou-se V. Ex. de transmittir os pedidos das Embaixadas da America do Norte, . . . e das Legações da . . ., no sentido de ser concedida isenção do imposto de renda, de accôrdo com o art. 6o do decreto n. 5.623, de 29 de Dezembro de 1928, ás companhias de navegação daquelles Paizes, em trafego com o Brasil. Em resposta, tenho a honra de declarar a V. Ex. que em face do dispositivo de lei citado, para que as companhias de navegação com sede no exterior fiquem isentas do referido imposto, basta que 1 Not printed. esse Ministerio communique ao da Fazenda o recebimento de qualquer acto do Estado interessado assegurando egual favôr ás emprezas nacionaes de navegação, Cumpre-me informar a V. Ex. que a Delegacia Geral do Imposto sobre a Renda mandou sustar a cobrança desse imposto das companhias de navegação com séde no estrangeiro, aguardando que tenha conhecimento da inexistencia das condições mencionadas em nossa lei, no tocante a qualquer Paiz. Reitero a V. Ex. os meus protestos de alta estima e distincta consideração. F. C. DE OLIVEIRA BOTELHO. A SUA EX. O SR. DR. OCTAVIO MANGABEIRA, The Brazilian Minister for Foreign Affairs (Mangabeira) to the NC/56 MR. AMBASSADOR: [Translation] MINISTRY OF FOREIGN AFFAIRS In continuation of my Note NC/29 of last April,' regarding the request of this Embassy for an exemption of income tax for American navigation companies, I have the honor to send Your Excellency herewith a copy of the reply from the Ministry of Finance giving an answer to the said request. Furthermore, I beg to inform Your Excellency that, upon this date, I have again sent to the said Ministry the provisions of the law mentioned in Note No. 1,419 of March 5th last, which, in your country assures reciprocity to foreign navigation companies of the exemption from the tax referred to. I renew the occasion to reiterate to Your Excellency the assurance of my highest consideration. OCTAVIO MANGABEIRA HIS EXCELLENCY MR. EDWIN VERNON MORGAN, Ambassador of the United States of America, Rio de Janeiro. 1 Not printed. [Enclosure-Translation] The Brazilian Minister of Finance (Oliveira Botelho) to the Brazilian Minister for Foreign Affairs (Mangabeira) No. 33. MINISTRY OF FINANCE May 29, 1929. Subject: Exemption from income tax on foreign navigation com MR. MINISTER: panies. Your Excellency transmitted me requests from the Embassies of..., North America, and from the Legations of ... for exemption from income tax, in accordance with Art. 6 of decree No. 5,623, of December 29, 1928, for the navigation companies of those countries engaged in traffic with Brazil. In reply I have the honor to state to Your Excellency that in view of the provisions of the above cited law in order that navigation companies domiciled in foreign countries may be exempted from the taxation referred to it will be sufficient that Your Excellency's Ministry shall state to the Ministry of Finance that such a law exists in the interested State granting similar favors to Brazilian navigation companies. I have to inform Your Excellency that the Income Tax Office has suspended the collection of said tax from the navigation companies domiciled in foreign countries pending information of the non-existence of the conditions mentioned in our law in relation to any country. I beg to renew to Your Excellency the assurance of my high consideration. F. C. DE OLIVEIRA BOTELHO. HIS EXCELLENCY DR. OCTAVIO MANGABEIRA, Minister for Foreign Affairs. The American Chargé d'Affaires (Schoenfeld) to the Brazilian Minister for Foreign Affairs (Mangabeira) No. 1467 MR. MINISTER: AMERICAN EMBASSY RIO DE JANEIRO, Sept. 17, 1929. Referring to Your Excellency's note No. NC/56 under date of May 31 of the current year, regarding exemption from income tax for foreign navigation companies, I have the honor to inform Your Excellency that I have just received the following request for informa |