From Australia to the USA, this is your guide to recent developments around the world
As the largest economy in South America Brazil has become increasingly important in the global market attracting many multinational enterprises (MNEs). Instead of adopting the arm’s-length principle Brazil developed its own transfer pricing regime which does not follow the internationally recognised OECD Guidelines. In addition double tax relief is virtually absent since Brazil has minimal provisions in its limited treaty network. Transfer pricing is therefore a crucial tax issue MNEs face in Brazil.
Brazil’s transfer pricing legislation (Law 9 430/96) effective January 1997 mandates prescriptive gross margins to define price ceilings on import transactions and floors for export transactions. The Brazilian tax authority Secretaria da Receita Federal (SRF) does not impose a method hierarchy or a ‘best method’ approach. In theory taxpayers may apply any method that complies with the...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
From Australia to the USA, this is your guide to recent developments around the world
As the largest economy in South America Brazil has become increasingly important in the global market attracting many multinational enterprises (MNEs). Instead of adopting the arm’s-length principle Brazil developed its own transfer pricing regime which does not follow the internationally recognised OECD Guidelines. In addition double tax relief is virtually absent since Brazil has minimal provisions in its limited treaty network. Transfer pricing is therefore a crucial tax issue MNEs face in Brazil.
Brazil’s transfer pricing legislation (Law 9 430/96) effective January 1997 mandates prescriptive gross margins to define price ceilings on import transactions and floors for export transactions. The Brazilian tax authority Secretaria da Receita Federal (SRF) does not impose a method hierarchy or a ‘best method’ approach. In theory taxpayers may apply any method that complies with the...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")