Revenue clarifies rules on transfer prices
01 Feb 2019
Normative Instruction RFB No. 1870 provides for the prices to be charged in the purchase and sale of goods, services or rights made by a natural or legal person resident or domiciled in Brazil, with a natural or legal person resident or domiciled abroad, considered to be related .
The RFB Normative Instruction No. 1870 was published on October 30, in the Federal Official Gazette, which deals with the updating of Normative Instruction RFB No. 1,312, dated December 28, 2012, which regulates transfer pricing rules.
The update clarifies the moment at which the calculation of transfer prices must be made, considering the specificities of each of the methods, as well as the timing and how the adjusted adjustment should be taxed.
The new text also clarifies the composition of the calculation of the price and parameter price, disciplining the issues related to the inclusion of freight and insurance, the calculation of initial inventory balances and the non-inclusion of export operations in the average used for the price parameter.
Additionally, it is reaffirmed that the calculation of the parameter price and the price practiced is effected product by product, calculating annual arithmetic averages. Such a rule, however, does not apply to commodity methods, in which the comparison between the price practiced and the price parameter is carried out transaction per transaction.
With respect to the PCI and Pecex methods, the concept of commodities is redefined, ensuring greater legal certainty for taxpayers. In addition, for these methods, the wording of certain devices is modified to eliminate any doubts related to the quotation date to be used in calculating the parameter price and related to the adjustments to be made in the calculation of the transfer prices. Finally, for the calendar year after 2019, the way of calculating the margin of divergence is adjusted, bringing it closer to international practice.
Fonte: Receita Federal