British Chamber studies Lula’s position on OECD – 02/16/2023 – Panel SA

Britcham (British Chamber of Commerce and Industry in Brazil) plans to set up meetings with Lula’s economic team to deal with changes in transfer pricing rules (the way in which international transactions carried out by multinationals are taxed).

For the entity, it also lacks a better understanding of the new government’s position on the OECD (Organization for Economic Cooperation and Development).

At the end of December, a provisional measure edited by the Bolsonaro government, which takes effect next year, changed the legislation on transfer pricing. The text still needs to pass through Congress.

For Leonardo Martins, from Britcham, the MP is a step towards Brazil’s ascension project to the OECD.

“This is still unclear. We do not have a clear signal from the new government on this issue of Brazil’s accession to the OECD. It is not yet possible to specify what the new government’s behavior will be”, he says.

According to Martins, Britcham has reservations about the new rules. One of them is the time for companies to adapt.

“It is a short time for so much adjustment, for so much complexity that needs to be adequate in the fiscal controls of the companies. This ends up reverberating in operational and practical difficulties. A suitable point would be to have a transition rule from the old regime to the new one.”

Joana Cunha with Paulo Ricardo Martins It is Diego Felix

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