We want to let you know that the Brazilian president has officially endorsed Law 14,596/23, introducing significant amendments to the legislation governing corporate income tax to establish comprehensive regulations on transfer pricing. This landmark law is the approval of the Provisional Measure 1,152/2022, which had received approval from the Federal Senate on May 10th.
The primary objective of Provisional Measure 1,152 was to align Brazil’s transfer pricing regulations with international standards, by adapting them to the best practices advocated by the Organization for Economic Cooperation and Development (OECD). This move represents a crucial step towards enhancing Brazil’s global competitiveness and fostering a business-friendly environment.
Taxpayers in Brazil now have the option to voluntarily adopt the new rules as early as 2023. However, it’s important to note that the mandatory application of these regulations will come into effect from 2024 onwards. This provides businesses with an opportunity to prepare and adjust their operations accordingly.
To ensure clarity and guidance, it is anticipated that the Brazilian tax authority, Receita Federal, will publish Normative Instructions between June and August. These instructions will provide comprehensive details on specific aspects of the Law, helping businesses navigate the new regulations with confidence and ease.
Stay tuned for more updates as we embark on this exciting new era of tax reforms in Brazil! If you have any questions or require further information, our team at BaseFirma is here to support you. email@example.com, firstname.lastname@example.org.
Click here to consult the official release.