Brazil issues new transfer pricing rules
01 June 2012
Luiz Felipe Centeno Ferraz, Alessandro Amadeu da Fonseca and Antonio Carlos Marchetti Guzman of Mattos Filho Veiga Filho Marrey Jr e Quiroga Advogados analyse the recently updated Brazilian transfer pricing rules and offer insight into what it means for multinational taxpayers.
|The changes have significantly adjusted the transfer pricing landscape in Brazil|
On April 4, the Brazilian government published Provisional Measure 563/2012 (MP 563) with some relevant changes to transfer pricing legislation. While MP 563 is a result of year-long discussions between the Revenue Service and entities representing some taxpayers about necessary modifications to Law 9,430 (the primary regulatory frame for transfer pricing in Brazil), they do not mean that all the suggestions made by taxpayers were in fact implemented in this new set of rules – rather, some of these new rules were long expected, some others meant a surprise and, whether or not they will be advantageous to taxpayers, that will likely depend on their profiles.
Creation of an entirely new method
Aiming at the prevalence of the arm''s-length principle on the search for a standard price in controlled transactions involving commodities, MP 563 created methods based on the...
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