Transfer Pricing in Brazil: COVID-19 Considerations and the Path Towards an OECD Model

From the Base Erosion and Profit Shifting (BEPS) project to the taxation of the digital economy, the international tax landscape is changing dramatically at a speed rate never seen before. Multinationals organizations around the world are struggling to keep up with global and local regulation changes while maintaining and improving their global supply chain.

One of the most important international tax changes to come is the possible adoption of the OECD transfer pricing system by Brazil. In December 2019, Brazil and the OECD announced a clear pathway for the Brazilian transfer pricing framework alignment with the international consensus. How will the change affect foreign direct investments in Brazil? How will the industry react to the proposed alignment? Will global supply chains be affected by this transition? What steps business should take in light of the new changes?