- The new Normative Instruction formally includes transfer pricing elements as part of the process to audit import prices for custom valuation purposes; so far, this intersection has not been expressly stated in legislation.
- It is expected that these regulations could result in increased scrutiny on import prices. Accordingly, taxpayers must be in a position to support the reasonableness of intercompany pricing policies and procedures.
- Brazil’s potential adoption of OECD-oriented transfer pricing in the future will likely increase the necessity of counting on robust and well-documented price-setting processes.
- Gathering facts, aligning teams and revisiting pricing policies is key to anticipating potential questioning from tax authorities, as well as properly responding to potential tax audit processes.
Source EY
Latest Posts in "Brazil"
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