Federal Revenue defines new rules for taxation of multinationals

The Federal Revenue defined this Friday (29) new rules for transfer pricing for multinationals operating in the country. Transfer pricing is the way of calculating part of a company’s profit for the purposes of Income Tax (IR) and Social Contribution on Net Profit (CSLL) taxation.

“The regulations also regulate the form and deadline that must be observed by taxpayers who wish to bring forward the application of the new system to 2023. These taxpayers must fill out a specific form and express their option from September to December on a definitive basis”, he informed. the Federal Revenue.

According to the body, the provisions included in the Normative Instruction, which contains the new rules, “will be subject to more detailed regulation at a subsequent time, for example, the provisions that deal with transactions with commodities”.

In December 2022, Provisional Measure No. 1,152 was issued, significantly modifying Brazilian transfer pricing rules. In June 2023, the MP was converted into Law No. 14,596. The new regime must be applied mandatorily from 2024 or optionally for 2023 for taxpayers who wish to anticipate the effects of the new law.