Brazil issues new transfer pricing rules

The Brazilian Federal Revenue Service has published RFB Normative Ruling No. 2,161/2023, setting out the new transfer pricing rules for determining the Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) calculation bases applicable to controlled transactions with related parties abroad for companies based in Brazil.

According to the regulation, the new regime will be mandatory starting 2024 but companies may opt to apply it as early as 2023 provided that they make a formal request by opening a digital procedure on the Virtual Center Portal (e-CAC) and fill out the form supplied in Annex 6, which must be filed from September 1 to December 31, 2023.

The rules have also established that specific provisions, such as those governing commodity transactions, shall be subject to further regulation based on feedback collected via public comments.

The new transfer pricing regime represents a change in the previous system, which dates back to the 1990s, with the aim of bringing Brazilian business practices in line with international standards in a joint effort with the Organization for Economic Cooperation and Development (OECD).

Transfer pricing compliance

The team of experts at Domingues e Pinho Contadores assists companies in the assessment and application of transfer pricing rules, ensuring that their operations remain in good standing. You can count on our support: dpc@dpc.com.br.