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Brazil: Comments requested, transfer pricing issues relating to safe-harbour, comparability considerations

Brazil: Transfer pricing issues, safe harbour

The Organisation for Economic Cooperation and Development today announced that as part of the implementation phase of a joint transfer pricing project between the OECD and Brazil, the OECD Secretariat and Receita Federal do Brasil (RFB) launched a survey to seek public input to inform the work related to the development of safe harbours as well as other simplification measures and measures that can contribute to enhanced tax certainty.


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As noted in the OECD release, a project on transfer pricing in Brazil was announced in February 2018 to review differences in the Brazilian transfer pricing rules as compared to the OECD standard. The project findings were released in a December 2019 report. The report identifies two options for Brazil to converge with the OECD standard, while enhancing the positive attributes of its existing transfer pricing framework. Both options contemplate full adherence to the arm's length principle, while seeking to preserve simplicity and certainty. Read TaxNewsFlash

In this regard, consideration will be given to incorporating targeted safe harbours in appropriate circumstances. Safe harbours—simplified approaches for determining or approximating the arm’s length price—may allow for benefits in terms of simplicity and certainty, if properly designed (in line with the arm’s length principle) and applied in appropriate circumstances (under specified eligibility criteria). They also reduce tax compliance costs for taxpayers and contribute to more efficient tax administration and tax certainty. Other measures and practices can also contribute to tax certainty in situations where safe harbours may not be an appropriate tool. Such measures and practices may include advance pricing arrangements (APAs), which also may provide a framework for achieving tax certainty in more complex and higher risk transactions.

To structure the input, a survey has been designed containing 17 questions related to:

  • Identifying situations where specific safe-harbour regimes may be needed
  • Use of the available comparables data
  • Considerations for the use of advance pricing arrangements (APAs)
  • Other simplification measures

Survey responses are due by 18 September 2020.

For more information, contact a tax professional with KPMG’s Global Transfer Pricing Services practice in Brazil:

Edson Costa | +55 (11) 3940-5313 |

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