Linkedin Instagram


  • 30 December 2022

New Brazilian Transfer Pricing Rules

Provisional Measure No. 1,152 (“MP 1,152”) was published yesterday with important changes to Brazilian transfer pricing rules.

As already indicated by the Brazilian Federal Revenue Office, the new rules aim to align local legislation with the guidelines approved by the Organisation for Economic Co-operation and Development – OECD, grounded on the arm’s length principle and economic concepts, rather than the current rules based on pre-fixed and exhaustively described methods.

In a nutshell, MP 1,152 aligns the Brazilian transfer pricing legislation with the arm’s length principle, introduces a conceptual definition of tested transactions, sets economic assumptions for the definition and comparability of transactions and election of the applicable method, as well as other important aspects, such as potential adjustments to be made by the Brazilian taxpayer, documentation, penalties, applicable treatment to specific transactions etc. 

We will share in the upcoming days our insights on the innovations brought by MP 1,152.

MP 1,152 will entry into force on January 01, 2024 (subject to conversion into law), with an irreversible option for taxpayers to already apply its provisions as from January 01, 2023 onwards.

The content of MP 1,152 will be discussed by both Brazilian federal legislative houses (Chamber of Deputies and Senate) during the first semester of 2023 and may be significantly changed.

Lefosse’s Tax Team closely monitors the changes that impact the Brazilian market. For further clarification on this matter, or others that may be of interest to you, contact our professionals.

Tem alguma dúvida? Entre em contato com a nossa equipe marketing@lefosse.com



Subscribe to our newsletters

Sign up