Tuesday, 17 April 2012

Brazilian government makes significant changes to transfer pricing legislation

As part of a long-awaited initiative to stimulate domestic growth, the Brazilian government on 3 April published Provisional Measure (MP) 563/2012, which includes significant changes to the country's transfer pricing rules. MP 563/2012 amends the rules applicable to imports of goods, sets profit margins for certain sectors, and creates two new transfer pricing methodologies.
The MP still must be enacted into law, which is expected to take place within 60 days following publication. Although the changes made by MP 563/2012 will apply to fiscal years starting on or after 1 January 2013, taxpayers can opt to apply the rules from fiscal year 2012.
More info: Deloitte