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Brazil Consolidates Thin Capitalization Regulation

By Joaquim Manhães Moreira, Lucas Kurtz and Daniel Takaki – Manhães Moreira
Advogados Associados

A review of recent changes in Brazil related to thin capitalization, which apply to money borrowed by a Brazilian company from a foreign related party. Thin capitalization allows the borrowing party to pay interest to the related party lender instead of paying dividends.