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April 13, 2022

Brazil to propose new transfer pricing system in line with OECD

On April 12, 2022, the Brazilian tax authority and the Organisation for Economic Co-operation and Development (OECD) held a meeting in which they discussed a proposal for a new transfer pricing system in Brazil that would align with the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (OECD Standard). The new system would include the implementation of the arm’s length principle, which would be an important step for Brazil in reducing the gap that currently exists between the Brazilian transfer pricing rules and the OECD Standard.

A Tax Alert is forthcoming.