WTS in Brazil

One of the relevant topics is the tax treatment of contingent considerations and any other type of price adjustments and their effects on the tax amortisation of goodwill.

The Superior Court of Justice has decided that, until further legislative measures are taken, the so-called PRL 60 method must be calculated in a specific way. Our article sheds light on the decision and elaborates on the main practical implications.

Provisional Measure (MP) 1152, published on December 29, 2022, substantially amended the Brazilian transfer pricing rules currently in force for transactions carried out between related parties, with the purpose of aligning them with the OECD Guidelines.

The tax burden for services imported into Brazil will be reduced.

On 5 September 2022, the Brazilian government approved Law 14440/2022, which, by amending Law 11945/2009

April 2022 saw the Brazilian Federal Revenue Service and the OECD present a proposal for the new Brazilian TP system

Recently, the highest level of the Federal Administrative Tax Court (CSRF) changed its longstanding view on the overlapping of Article 7 of the Double Tax Treaty (DTT) and the Brazilian Controlled Foreign Corporation (CFC) rules, now favouring taxpayers. 

In 2021, the United Kingdom’s Financial Conduct Authority announced several changes to the benchmark settings currently published by the ICE Benchmark Administration

As commented upon in Customs Newsletter # 3.2021 (November 2021), Brazil was authorised by Mercosur to reduce Import Duty rates to up to 0% by means of the tariff exception

Brazil’s Superior Court of Justice (STJ) issued a very important judgment, establishing the initial term of the penalty and interest calculation on the drawback customs regime

In Brazil, the duty exemption “Ex-Tarifario” has always had a major impact on the country’sdevelopment. It may nevertheless see an end this year.

Brazil has always taken heavy measures against the non-compliance with tax and customs regulations, especially by applying heavy penalties. To this effect, the customs authorities, sometimes accompanied by the federal police, are known for carrying out rigorous inspections to check the compliance with all applicable rules.

Although Brazil is commonly known for its bureaucratic proceedings, it should be noted that in the customs and tax areas it has developed state-of-the-art controls which ensure compliance with legal regulations and speed up processes, making transactions fast and transparent.

Brazil is known for not implementing the OECD Guidelines regarding transfer pricing. Now, new transfer pricing documentation requirements have been announced. This will require a significant effort, even though Brazil is already at a very high level in this respect.

Brazil is potentially changing the tax treatment for supplies of software. 

In this newsflash, our Brazilian colleagues from Machado Associados provide the latest insights on the Tax on Causa Mortis Transmission and Donation (ITCMD).

An overview on the dialogue between Brazil and the OECD on the alignment of transfer pricing rules with OECD standards.

Financing Programme for the Automotive Industry

The joint operation as Machado Associados combines the efforts, knowledge and experience of their teams, advancing their performance in Business Law

Machado Associados - Legal Letter February 2019

Machado Associados-Ricardo M. Debatin da Silveira and Gabriel Caldiron Rezende published an article in International Tax Review 

The Brazilian Federal Revenue Service published the Normative Instruction 1863, which regulates the National Corporate Taxpayer’s Register and revokes Normative Instruction 1634/2016

Tax authorities challenged a benchmark price under the PIC method calculated by a company in the chemical sector 

Failure to comply with the obligation to inform and present documents to the RFB may result in the suspension of the CNPJ registration

Luís Rogério Farinelli and Fernando Teles da Silva of Machado Associados Advogados e Consultores take a look at how AI can help reduce risk, increase value, and drive a cost-effective approach to tax reporting and compliance.

Regimes and on documentation related to taxes paid abroad

The government of the state of Rio de Janeiro has changed the legislation of the Causa Mortis Property Inheritance and Donation Tax (ITD)

Individuals or legal entities who receive in cash amounts equal to or exceeding BRL 30,000, must submit a Declaration of Transactions Liquidated in Cash

Following a recent law regulating Brazil’s State VAT on interstate transactions, new controversies remain on the horizon.