Brazil identifies a clear pathway for aligning its transfer pricing framework with the OECD standard

rio

(Robert Nyman, Unsplash)

This article is brought to you in association with OECD.


Brazil has identified a clear pathway for bringing its existing transfer pricing framework into alignment with the international consensus, and is weighing two options – immediate or gradual implementation, according to a new joint report by the OECD and Receita Federal, Brazil’s federal revenue authority (RFB).

Transfer Pricing in Brazil: Towards Convergence with the OECD Standard assesses the similarities and differences between Brazil’s transfer pricing rules and the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, which is the international consensus on transfer pricing.

The report, released today in Brasília, 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, which is at the core of the OECD standard, while seeking to preserve simplification, maintain ease of compliance and effectiveness of tax administration, as well as cross-border tax certainty.

The report is the outcome of a 15-month joint transfer pricing project launched in February 2018 between the OECD and Brazil’s federal revenue authority (RFB). The project, supported by the United Kingdom Foreign and Commonwealth Office (FCO), is now in the second phase with the objective of preparing a blueprint and a roadmap that will outline the implementation process.

Grace Perez-Navarro, Deputy Director of the OECD Centre for Tax Policy and Administration, told participants in a launch event hosted by RFB that the OECD would continue to support authorities during whichever implementation plan is chosen. “Aligning Brazil’s transfer pricing rules with the OECD standard will reduce the barriers to investment stemming from the existing risk of double taxation,” Ms Perez-Navarro said. “Convergence will also reduce the revenue losses resulting from the specific features of the current system. The OECD is committed to provide further assistance and support RFB in this process.”

Special Secretary of Brazil’s Federal Revenue, José Barroso Tostes Neto, also expressed support for bringing Brazil closer to the OECD standard. “The report outlines the direction of our next efforts, which is the full alignment with the OECD transfer pricing standard”, said Mr Tostes Neto. “This is because our vision for the future aims at increasing integration and openness of Brazil. We are counting on all the stakeholders as well as on the OECD and the countries who provided their generous assistance and support to achieve the goal of implementing a system that will be appropriate and work for Brazil, and become an inspiration for other countries to follow.”

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Changing world of work needs new jobs strategy

Every year, South Korea comes to a standstill for an exam marathon

One million facing food shortages, nutrition crisis after Mozambique cyclones: UNICEF

Empathic AI could be the next stage in human evolution – if we get it right

On the euro but out of it?

Council strongly criticised over failing to act to protect EU values in Hungary

ECB doesn’t dare touch Eurozone’s big banks

Can the national and age groups pockets of unemployment cause irreparable damages to Eurozone?

Anti-terror measures against youngsters’ online posts ‘linked to spike in child detention globally’

Davos: Why the global elites couldn’t find answers this year?

European Parliament backs CO2 emissions cuts for trucks

“InvestEU”: MEPs support new programme to boost financing for jobs and growth

“If the job market doesn’t exist, then even the most brilliant Youth Guarantee cannot ensure a job to these young people”, European Youth Forum Secretary General Giuseppe Porcaro on another Sting Exclusive

Draghi tells the EU Parliament his relaxed policies are here to stay

Siemens-Alstom merger: Will the EC succumb to Franco-German pressures for the sake of May’s EU Elections?

The business case for investing in sustainable plastics

The impact of mobile and rapid digital adoption on how India consumes

Consumer product quality: MEPs take aim at dual standards

First-ever global conference of national counter-terrorism chiefs will strengthen cooperation, build ‘resilient’ States, says top UN official

Safer roads: EU lawmakers agree on life-saving technologies for new vehicles

Brexit mission impossible: Theresa May was so desperate that had to appoint Boris Johnson as Foreign Secretary

Commission assesses and sets out reform priorities for the countries aiming to join the EU

UN ‘financial crisis,’ years in the making, Guterres tells budget body, proposes solutions

Scientists are using machine learning to unlock the mysteries of long-dead languages

Sustainable finance: Commission welcomes deal on an EU-wide classification system for sustainable investments (Taxonomy)

Most ‘precious’ and ‘scarce’ resource of our time is dialogue, UN chief tells Doha policy forum

Ukraine jet crashes in Iran, killing 176: UN chief offers deepest condolences

Norway initiates WTO dispute complaint against US steel, aluminium duties

The importance and the need of mobile technology in the health care system and in saving lives

Eurogroup: IMF proposes Germany disposes

Pumping more money into banks but leaving them unregulated doesn’t help

Consumer protection: Commission welcomes political agreement by Council on the Representative Actions Directive

2014 budget: The EU may prove unable to agree on own resources

Violence on the rise in Darfur following Sudan military takeover, but UN-AU peacekeeping mission maintains ‘robust posture’

Commission welcomes political agreement on InvestEU

Beyond 2020: How the world might recover and rebuild, according to experts

Blue bonds: What they are, and how they can help the oceans

Fake news and Freedom of Press: can the EU ever find the fine line?

Venezuela: EU reaffirms support to refugees and migrants at International Donors’ Conference

Water reuse: Commission welcomes the provisional agreement on minimum requirements for water reuse in agriculture

Mental health: privilege in coronavirus times

New report says better metrics could have prompted stronger response to the crisis

The pandemic has damaged youth employment: Here’s how we can help

Europe enters uncharted waters with Kiev-Moscow standoff

UN recognises role of sport in achieving sustainable development

Consumers and businesses to save money thanks to new EU cross-border payments rules

Tunisia wants to change inheritance rules to boost gender equality

The next Google in biotech: will it be Chinese?

The remote doctor, can it ever work?

Dangers of poor quality health care revealed ‘in all countries’: WHO report

Tax revenues in Asian and Pacific economies rebound

Not much of a help the new EU Directive on pensions

Want to stop plastic pollution? Start by supporting your local zero-waste business

Could 2021 be a turning point for forests and climate change?

The pandemic’s effects on US jobs in charts

International Women’s Day 2019: more equality, but change is too slow

A Sting Exclusive: “Seize the opportunity offered by Africa’s continental free trade area”, written by the Director General of UNIDO

The future of sustainability: recycling carbon through the power of the sun

EU deal on electricity market rules to benefit both consumers and environment

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s