On 12 April 2022, the tax authority and Organisation for Economic Co-operation and Development (OECD) met to discuss Brazil’s proposal for a new transfer pricing (TP) system. The Brazilian Economy Minister, Paulo Guedes, said that the creation of a new transfer pricing system by Brazil represents “a decisive step” for the country’s entry into the OECD.
The transfer pricing system is a procedure by which multinational companies move profits from one country to another, usually from a subsidiary to the parent company, or to countries with more favorable taxation, such as tax havens. This proposed system will prevent the country from excessive taxation, which impedes investment, and evasion, by transferring benefits to legislation with more favorable taxation.
