Global

Details

  • Service: Tax, Global Transfer Pricing Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/19/2012

Brazil - Review of final transfer pricing law changes 

September 19:   In Brazil, Provisional Measure 563/2012 has been converted into Law 12.715/12, and with this action, changes to the Brazilian transfer pricing rules are enacted.

The provisions are effective beginning 1 January 2013, or may apply retroactively beginning 1 January 2012 at the taxpayer’s election, provided that the law’s changes are fully adopted by the taxpayer.


The law includes provisions concerning application of the:


  • Resale price method
  • Comparable uncontrolled price method
  • New transfer pricing methods for testing commodities transactions

The new law also provides that the amounts of import tax or customs duties, freight, and insurance paid on inbound transactions are not to be included in the import cost when testing the transaction, provided that payment is made to an unrelated party or to a company or individual not domiciled in a listed “low-tax jurisdiction” or located in a country having a “privileged tax regime.”


The law contains a provision that limits the deduction of interest on related-party loans.


Read a September 2012 report [PDF 71 KB] prepared by the KPMG member firm in Brazil.



Contact a tax professional with KPMG's Global Transfer Pricing Services.




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