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FEDERAL REVENUE OFFICE ISSUES IMPORTANT NEW REGULATION ON TRANSFER PRICING The recent Normative Ruling 1,870/2019 has amended Brazilian domestic legislation on transfer pricing, clarifying some details on how it is calculated. These include the correct assessment period, taking into account the characteristics of each arm’s length method,[...]

Companies that provide certain types of IT goods or services to the Brazilian market are granted tax benefits under Federal Law 8,248/91 when they prove they invest a minimum of 5% of their annual revenue in R&D activities. The Brazilian government regularly publishes a list of the eligible goods and services, which includes electronic[...]

On October 29, 2018, the Brazilian Government issued Decree 9,544/2018, which allows foreign investors to hold up to 100% of shareholder control of either Direct Credit Entities (“Sociedades de Crédito Direto – SDEs”) or Peer-to-Peer Lending Entities (“Sociedades de Empréstimo entre Pessoas – SEP”) registered with the Brazilian[...]

The Federal Revenue Office has issued Private Letter Ruling 185/2018, which analyzes the tax compliance obligations that taxpayers must comply with in order to offset the withholding income tax levied on service fees, profits, capital gains and other income earned abroad against the corporate income tax levied in Brazil. According to the tax[...]

The Federal Revenue Service of Brazil (RFB) issued a proposal for a new normative instruction that regulates the market for cryptocurrencies, such as bitcoins. The proposed normative instruction provides for another ancillary obligation (i) for Brazilian resident legal entities qualified as cryptocurrency exchanges and (ii) for Brazilian resident[...]

Important New Private Letter Ruling on Transfer Pricing The Federal Revenue Office issued the Private Letter Ruling 95/2018, which has analyzed the transfer pricing calculation through the Resale Price Method by a company that imports steel bars and cut them into pieces for the resale in the domestic market. The tax authorities held that[...]

Brazilian Federal Revenue Bureau (RFB) Normative Instruction No. RFB/IN 1.634 of May 6, 2016, revoked the agency’s previous Normative Instructions (Nos. RFB/IN 1.470/2014, 1.511/2014 and 1.551/2015) and altered the regulations for registration and maintenance on the nation’s Corporate Tax Registration Roll (CNPJ). Now it is mandatory to[...]

Earlier this year, the CVM – the equivalent to the SEC in Brazil – had issued a regulation to forbid local funds from investing in bitcoins and other cryptocurrencies. On September 19, though, the CVM’s office for supervision of relations with institutional investors clarified that this regulation does not prevent  indirect investment in[...]

The Federal Revenue Office (RFB) has recently issued Private Letter Ruling (PLR) 2,010/2018, stating that the acquisition of marketing and distribution rights for software generates the payment of royalties to the extent that it involves the resale of software licenses. Therefore, the payments for such rights from a Brazilian resident to a[...]

Brazil-Argentina Amendment Protocol to Double Taxation Convention On August 28, Decree 9,482 was published in Brazil’s Federal Gazette, enacting the Brazil-Argentina Amendment Protocol to Double Taxation Convention, which is now in force in Brazil. This Protocol introduces several modifications to the Brazil-Argentina DTC related to: (i)[...]