Before
talking about taxation in Brazil, we must recognize the fact that Brazilian tax
system is illogical and retrograde. It was made to sustain the luxury of
corrupt politicians, and has been changed only to adjust the government
revenues to guarantee the permanence of “status quo”.
This
simple fact made Brazil’s taxation an unfair and complex system, with taxes
being burden by other taxes, double taxation to the same event, and more than
one tax with the same purpose. Only to have an idea about what is being
demonstrate, for example, in Brazil we have 04 (four) taxes to support the government
social security system, and they affect the production in chain. Really
shameful!
In
despite of the bad administration, Brazil is a very accessible country and are
a lot of good investment to be made, especially on the agricultural and health
areas. Brazil is one of the most spectacular places to develop researches,
because of its diversity.
It
is important to warn; these things extremely claim a specialist with real
experience in Brazilian taxation to turn the investment on. Although, in this
paper we will talk about the Brazilian Transfer Pricing basic rules and
methods.
All
Transfer Pricing methods, OECD Legislations, International Tax Issues, APAS,
BEPS and Cost Sharing are attended by the Brazilian legislation, but the matter
is regarding the interpretations given by the “Auditores da Receita Federal do
Brasil” (Brazilian Federal Revenue Officers).
Brazilian
Law on transfer pricing, under the rule of the Federal Revenue are IN RFB
1.623/2016, IN RFB 1.547/2015, IN RFB 1.321/2013 and IN RFB 1.312/2012[1].
The
Normative Instruction 1.623, from February 26th of 2016, dispose on
the adjustment mechanism to proving transfer pricing on exportation, in order
to reduce the impact valuation of national currency relating international
currency, to the calendar year of 2015.
The
Normative Instruction 1.547/2015, from February 13 of 2015, dispose on the
adjustment mechanism to proving transfer pricing on exportation, to reduce the
impact valuation of national currency relating international currency, to the
calendar year of 2014.
The
Normative Instruction 1321, from January the 16th of 2013, disposes
about the adjust mechanism to demonstrate transfer prices on export operations
to the year of 2012. The Normative Instruction 1312, from December 28th
of 2012, only makes some ratifies.
About
the taxes related directly to international operations of transfer pricing, Brazil
has two taxes on revenues, the CSLL – Contribuição Social Sobre o Lucro Líquido
(Social Contribution on Net Profit) and the Imposto de Renda (Income Tax). The
first is regulated by the Law 7689, from December 15th of 1988, and
the second by the Decree 3000, from March 26th of 1999 (RIR).
Transfer
pricing in Brazil is regulated by the Law 9430, from December the 27th
of 1996, last year modified by the Law 12715, from September the 17th
of 2012, which made significative changes to the Brazilian transfer pricing
legislation, especially in relation of import and export operations with
commodities, between the corporation based in Brazil and its related companies
based outside.
The
present methods of transfer pricing in Brazil, attending the international
rules, are the independent compared prices method, the resale price minus
profit method, and the cost of production plus profit method.
Although,
the Brazilian revenue created two other new methods, not in despite of the
original ones, to stablish transfer prices: a) Price under quotation on import
operations (PCI) – defined as the daily average values of the quotation of
goods or rights subject to public prices on import operations; b) Price under
quotation on export operations (PECEX) – defined by the daily average values of
the quotation of goods or rights subject to public prices at the mercantile stock
exchange. These new changes were regulated by the IN RFB 1312/2012.
Not
in despite of this, the IN RFB 1395/2013 makes a complement to the rules of the
1312/12, especially to clarify and/or facilitate to the taxpayers the using of
the new methods of transfer pricing.
Between
the new modifications brought by the new rules we can quote: a) better
definitions on what is considered a commodity by the rule of PCI and PECEX
methods; b) amplification of the number of variables able to be consider on
adjusts regarding the differences between the net value received by the
exporter and the value regarding the specific quotation of the commodity at the
mercantile exchange; c) setting the date of the transaction, for purposes of
comparison with the quotation at the international mercantile exchange,
establishing that the data when the price was negotiated, as established in the
contract and usual market proceedings; d) specific rules to the hypothesis of
the commodities which have especial markets with regional reference prices,
facts which the legal person shall choose, as the parameter of transference,
the price of quotation of goods in the destination market of the exported good.
The
operations made by corporations in Brazil and a related legal person based in
other country must be submitted to the Federal Revenue of Brazil, if they are
concerning goods, services and revenues derived from importation or exportation.
The
corporations based in brazil are considered for fiscal affairs like a
“resident” and the ones based outside “nonresident”.
It
is considered a Brazilian related corporation the headquarter corporation based
outside the country or a subsidiary corporation, parent company or affiliate,
or under stock control.
The
cost of Goods, services and rights acquired abroad, present in the documents
regarding import or export operations with a related person will be deductible
from the basis of calculus of the “lucro real” (real profit tax regime,
mandatory to person with international gain or payment obligations with a
related headquarter). The real profit tax regime is mandatory to the ones who
have profits regarding related corporations abroad.
Brazil
is a good place to invest, but this country is not for amateurs!
[1] IN
RFB (Instrução Normativa da Receita Federal do Brasil) means Normative
Instruction of the Brazilian Federal Revenue;
Comentários
Postar um comentário