811.512332 Shipping/20
The American Ambassador in Brazil (Morgan) to the Brazilian Minister for Foreign Affairs (Mangabeira)33
Mr. Minister: 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):34
“(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.35
[Page 476]The shipping lines operated by the United States Shipping Board to Brazil are the following:
- American Brazil Line;
- American Republic Line;
- Gulf-Brazil-River Plate Line;
the companies which operate the same are respectively:
- Colombian Steamship Company,
17 Battery Place, New York. - C. H. Sprague & Son, Inc.,
33 Broad Street, Boston. - Mississippi Shipping Company, Inc.,
1310 Hibernia Bank Building, New Orleans.
Accept [etc.]
- This note and the other notes in this section exchanged between the American Embassy and the Brazilian Foreign Office were forwarded to the Department in despatch No. 3505, January 14, 1931; received February 2.↩
- 45 Stat. 791, 847, 849.↩
- By a note No. 1412, dated January 19, 1929, the American Ambassador requested the Brazilian Government to exempt the Munson Steamship Line and the McCormick Steamship Company from taxation.↩