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  • 4 April 2023

Provisional measure introducing the new transfer pricing rules is approved by the House of Representatives

Provisional Measure No. 1,152/2022 was approved by the House of Representatives.

The wording approved preserved the essence of the original one, with effects from January 1, 2024 and possibility of voluntary early adoption in 2023. Some changes were however included:

  • CUP will be the preferable method for commodities only when its application would comply with the arm’s length principle;
  • The rule that would not allow the deductibility of royalties paid to low tax jurisdictions and privileged tax regimes was excluded from the approved wording. Royalty deductibility will follow the new transfer pricing regime; and
  • The rule dealing with secondary adjustments (including the 12% interest rate) was suppressed.


Next steps

1.  The approved wording will now be sent to the Senate for its review and approval.

2.1. If the Senate does not change the wording approved by the House of Representatives then it will be sent to the President for sanction or veto,

2.2. If the Senate changes the wording, the House of Representatives would reanalyze the new wording as approved by Senate. After that, it goes to the President for sanction or veto.


It is expected that the Senate will start its part of the process this week.

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



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