Brazil Poised to Overhaul Its Transfer Pricing Rules

As part of its bid to join the OECD, Brazil is working on a major overhaul of its rules governing transfer pricing—the way a group’s related entities value transactions between themselves.

Historically, Brazil’s transfer pricing rules have relied on a system of fixed margins. But officials have now committed to moving Brazil to the arm’s length standard, the basis of the Organization for Economic Cooperation and Development's guidelines, and many countries’ approaches to transfer pricing.

Romero Tavares, a partner at PwC in Brazil, talks to Bloomberg Tax’s Isabel Gottlieb about what the changes mean for multinationals operating in Brazil, benefits and challenges companies will face under the new system, and what to expect as the government moves ahead with the project.

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