BDO Global Tax Alert - March 2023
10 March 2023
Our latest BDO Global Tax Alert covers the alignment of the Brazilian transfer pricing rules to the OECD international standard. This is long awaited by multinational groups and substantially changes their tax legislation and transfer pricing rules.
The Brazilian government on December 28, 2022, published draft legislation to align Brazil’s transfer pricing rules with the Organisation for Economic Cooperation and Development (OECD) Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.
The last significant change in the Brazilian transfer pricing legislation took place 10 years ago, when Law 12,715 of 2012 introduced, for example, new margins for the resale minus profit methods (40%, 30% or 20%) and specific methods applicable to commodities (PECEX and PCI). The Brazilian transfer pricing rules continued to be considered unique around the world, given that the legislation is completely different from international transfer pricing standards.
From 2012 to 2022, many events contributed to the long-awaited alignment of the Brazilian transfer pricing rules with OECD standards.
Provisional Measure (MP) 1,152/2022 substantially changes Brazil’s tax legislation and transfer pricing rules.
READ GLOBAL TAX ALERT MARCH 2023