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

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

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

The plan aims to improve the efficiency, transparency, and effectiveness of direct tax administration in India
Meanwhile, South Africa’s finance minister has accepted a court decision on suspending a VAT increase and US President Donald Trump mulls a 100% tariff on foreign films
Jaime Carey speaks about the benefits of his tax background, DEI values, the use of AI for a smarter legal practice, and other priorities that will define his presidency
Historically low levels of attrition over consecutive years made a ‘difficult decision’ necessary, PwC has reportedly said
WTS Global is also vetting new potential member firms in Algeria, Cote D’Ivoire and Benin, Kelly Mgbor tells ITR in an exclusive interview
The scope of qualifying pillar two tax credits could reportedly be broadened; in other news, hundreds of IRS appeals staff are to resign
For many taxpayers, the prospect of long-term certainty that a bilateral APA offers can override concerns about time, cost and confidentiality
Levine, who served under the Joe Biden administration, led the US’s negotiations on the OECD’s two-pillar solution
The deal to acquire ITR's parent company is expected to complete by the end of May 2025
JBS, the biggest meat company in the world, allegedly used Luxembourgian ‘mailbox companies’ to avoid taxes between 2019 and 2022
Gift this article