The Brazilian transfer pricing landscape has undergone significant changes with the recent adoption of the arm’s-length standard and increased alignment of methods and documentation requirements with international practice. The new transfer pricing rules are effective as of the fiscal year beginning January 1, 2024 and give taxpayers the option to adopt one year early, for 2023. These regulatory changes prompted the Brazilian Federal Revenue (RFB) to release a preliminary Normative Instruction for public consultation on July 3, 2023.
The transfer pricing methods described in the new regulations are a shift from Brazil’s historical formula-based transfer pricing methods to those aligned with the Organization for Economic Cooperation and Development (OECD) Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (the OECD Guidelines). Under the OECD Guidelines, the tested party’s return may be evaluated under the transactional net margin method (TNMM) or cost plus method (CPLM), both of which rely on a search to identify comparable companies. The recent Normative Instruction indicates a preference for using domestic comparable companies for Brazilian operations, indicating that there may be significant differences in the economic circumstances of different markets. In this article, we share our experience with the availability of Brazilian comparable companies.
Novas regras de preços de transferência: as empresas estão preparadas?
O cenário brasileiro de preços de transferência passou por mudanças signi cativas com a recente adoção do padrão Arm’s Length e o maior alinhamento de métodos e requisitos de documentação com a prática internacional. As novas regras de preços de transferência entram em vigor a partir do exercício social iniciado em 1º de janeiro de 2024 e dão aos contribuintes a opção de adotá-las com um ano de antecedência, para 2023. Essas mudanças regulatórias levaram a Receita Federal do Brasil (RFB) a lançar uma Instrução Normativa preliminar para consulta em 3 de julho de 2023. A principal dúvida que ca é: as empresas brasileiras estão preparadas?
