WFC Joint Declaration of Sao Paulo – April 23rd, 2014
To the Brazilian Supreme Court,
The World Franchise Council – WFC, an international entity that unites national associations of 42 major countries, met in Sao Paulo, at the Hilton Morumbi Hotel, on April 23, 2014.
The WFC has learned of the new service tax applied in Brazil on royalties and franchise fees called ISS.
The WFC wishes to highlight that such additional tax negatively affects the economic balance of franchise contracts, impairs job creation, reduces new investments and imposes an extra burden that impacts negatively on franchise activities.
In light of these facts, the WFC views with concern such service tax and asks the Supreme Court of Brazil rule against the treatment of franchise royalty payments as subject to service tax.