Brazil: Update on the obligation to disclose certain transactions in Brazil

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Brazil: Update on the obligation to disclose certain transactions in Brazil

Oliveira-Julio
Gottberg-Ruben

Julio Oliveira

Ruben Gottberg

On November 17 2015, the Brazilian Congress approved the project for conversion into law of the Provisional Measure 685/2015 (PM 685/2015), without the articles intended to impose an obligation to disclose tax planning transactions.

PM 685/2015 was released by the Brazilian government on July 21 2015 and introduced, among other provisions, rules concerning the disclosure of certain transactions to the Brazilian Internal Federal Revenue Service (RFB).

In Brazil, a PM is a temporary executive order issued by the executive branch of the government. A PM has the authority of law, but it requires formal conversion into law by the Congress within a 60-day term. If Congress does not act within this initial term, then the measure expires unless extended for an additional 60-day term (such extension can only occur once). On September 9 2015, the Brazilian Congress extended the PM 685/2015 for an additional 60-day term (no further extensions are now permitted).

During the legislative process for converting PM 685/2015 into law, the legislators considered imposing an obligation to disclose tax planning operations resulting in suppression or reduction of taxes.

After extensive discussions involving the legality of tax planning in Brazil and the extension of RFB's powers, which is evidenced by repetitive moving back and forth between the upper and the lower chambers of the Congress, the law project was approved on November 17 2015. Interestingly, the final draft was approved without the articles intended to impose an obligation to disclose tax planning transactions.

The newly converted law will now be submitted for Presidential assent, which may only veto or approve it, without the possibility to reintroduce the provisions excluded by the Congress.

Julio Oliveira (julio.oliveira@br.pwc.com) and Ruben Gottberg (ruben.gottberg@br.pwc.com)

PwC

Tel: +55 11 3674 2276

Website: www.pwc.com.br

more across site & shared bottom lb ros

More from across our site

Corporate counsel should combine deep technical knowledge with strategic dynamism, says Agarwal, winner of ITR’s EMEA In-house Indirect Tax Leader of the Year award
Luxembourg’s reform agenda continues at pace in 2025, with targeted measures for start-ups and alternative investment funds
Veteran Elizabeth Arrendale will lead the new advisory practice, which will support clients with M&A tax structuring, post-deal integration, and more
MAP cases keep increasing, and cases closed aren’t keeping pace with the number started, the OECD’s Sriram Govind also told an ITR summit
Nobody likes paperwork or paying money, but the assertion that legal accreditation doesn’t offer value to firms and clients alike is false
Ryan hopes the buyout will help it expand into Asia and the Middle East; in other news, three German finance ministers have called for a suspension of pillar two
SKAT, which was represented by Pinsent Masons, had accused Sanjay Shah and other defendants of fraudulent dividend tax refund claims
TP managers must be able to explain technical issues in simple terms, ITR’s European Transfer Pricing Forum heard
Prudential had challenged HMRC over VAT group relief; in other news, Donald Trump unveiled timber and wood tariffs, and the European Commission published a ViDA implementation strategy
Australia’s CbCR rules have ‘widespread support’ and do not put American companies at a competitive disadvantage, the FACT Coalition said
Gift this article