29 September 2023 Brazil published normative instructions (IN RFB nº 2.161/23) for its new transfer pricing rules, which will apply from FY 2024 onwards.
Brazil’s transfer pricing legislation is now in line with the OECD Transfer Pricing Guidelines. In fact, the new legislation is the result of a joint project between the Brazilian Federal Revenue Service (Receita Federal do Brasil) and the OECD.
The normative instructions deal with the general aspects of the new law, which form the basic part of the new system and apply to all transactions falling within its scope. It addresses practical issues in the application of the new regime and provides simplification measures for some transactions as well as for the fulfilment of ancillary obligations.
For companies wishing to apply the new rules for FY 2023, the opt-in deadline has been extended to December. These taxpayers will have to fill in a special form and make their definitive choice between September and December.
In December 2022, Provisional Measure 1,152 was issued, significantly modifying Brazilian transfer pricing rules. In June 2023, the Provisional Measure was converted into Law 14.596/23.
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Brazil IN RFB No 2161-23