On August 25, Sergio André Rocha was interviewed by Valor Econômico regarding the Interpretative Declaratory Act no. 7/2016. In this Act, Brazil’s Tax Office established that the withholding tax and the CIDE contribution are levied on the capital contribution by non-residents with the transfer of technology for the Brazilian entity. In his words “a capital contribution, with funds or assets, is not equivalent to income earned by a non-resident”.