Transfer Pricing

The rules transfer pricing were introduced in Brazil by Law 9430/96, currently regulated by Regulatory Instruction 243/02.

With these rules, Brazil intends to join the group of countries that protect the outflow of foreign exchange credits, through control of import and export operations between companies of the same group.

The concept is not new, but it was received by Brazilian corporate taxpayers with reserve, mainly because Brazil decided to choose a model which, in some cases, sets a profit margin, which is not foreseen in the international model, adopted by a majority of other countries.

International rules follow the OECD guidelines (Organization for Economic Cooperation and Development). Brazil is not a member of the OECD.

Brazilian legislation requires that corporate taxpayers maintain certain controls and documents to comply with transfer pricing rules.

KPMG has a team with knowledge in transfer princing legislation, which has been working vigorously on the orientation of companies on how to fully observe the legislation, always alert to opportunities for reducing the tax burden and to conflicts in the interpretation of the rules.

See what KPMG has to offer in this area:

• If your company already adopts transfer pricing controls and wants to be absolutely sure that it meets legal requirements, KPMG offers review procedure services, which include mapping the operations, numeric tests and suggestions for the improvement of controls, when applicable.
• If your company still has not implemented the controls required by law, KPMG can help you implement these controls, from an initial survey of the data, choice of the method(s) to be adopted for the proof of prices, up to the preparation of the spreadsheets required by the legislation. Therefore, KPMG developed internally a tool for the automation of the calculations to corroborate the transfer pricing, which can optimize the time spent in the preparation of these statements.
• In the case of corporate taxpayers who have been targeted for inspection by the Brazilian Commission for International Affairs, KPMG has provided advisory services in the gathering of data and in the preparation of documents to be shown to the tax authorities.
• If your company intends to set up an internal team responsible for transfer pricing, KPMG offers specific training.
• KPMG has also worked on the preparation and follow-up of the formalities of the administrative consultation to obtain a formal opinion from the Treasury on specific topics.

For more information about Transfer Pricing, click here.

The benefits for your company

The services offered bring the following benefits to your company:

• confidence that the procedures adopted observe the law;
• economy of taxes, through price management;
• reduction of the risks of additional tax assessment;
• training of technical staff.

In order to learn more about the global services offered by KPMG in Tax area - Economic and Valuation Services (EVS), click here .

For more information

Diogo H. Ruiz

Phone: 55 (11) 2183-3116
dhruiz@kpmg.com.br

Sérgio Schuindt

Phone: 55 (11) 2183-3214
sschuindt@kpmg.com.br

Eliete de Lima Ribeiro

Phone: 55 (11) 2183-3288
eribeiro@kpmg.com.br

Fax: 55 (11) 2183-3001