Transfer pricing in Brazil

Transfer pricing in Brazil at a glance

Regulation Type National regulations
Are there specific transfer pricing regulations? Yes
Submission deadline January 31st of the following fiscal year
Submission deadline upon request 20 days
Annual update required Yes
Official language requirements Portuguese
Potential impact of penalties N/A


Brazilian tax law

Rules for transfer pricing in Brazil are based upon:

  • Law 9,430/96
  • Law 9,959/00
  • Law 12,715/12
  • Law 12,766/12
  • Normative Instruction 243/02
  • Normative Instruction (IN) 1.312/12
  • Ordinance No. 222/08


Rules for transfer pricing in Brazil do not follow the OECD Transfer Pricing Guidelines in anyway. Transfer pricing in Brazil, furthermore, deviates from any other international standard regarding transfer pricing.


Accepted methods

Rules for transfer pricing in Brazil prescribe several different methods for different sort of transactions. Furthermore, there is a difference made between import- and export transactions.

Import transactions:

  1. PIC (comparable uncontrolled price method)
  2. PRL (resale price method
- prescribes statutory gross profit margins from 20 percent to 40 percent for calendar year 2013 onwards. The gross profit margins vary in accordance with the business segment for the imported goods, services, and/or rights. For calendar years before 2013, the statutory gross profit margins were 60 percent for imports of components or raw materials and 20 percent for imports that were resold in Brazil)
  3. CPL (production cost in the country of origin plus 20 percent profit margin)
  4. PCI (commodity exchange import price)

Export transactions:

  1. CAP (production cost plus 15 percent profit margin)
  2. PVEX (sales price on exports)
  3. PVA and PVV (resale price minus 15 percent for wholesale, 30 percent for retail)
  4. PCEX (commodity exchange export price). Safe-harbor exceptions on exports are available if certain conditions are met. Refer to Normative Rulings 243/02, 382/03, and 1,312/12

Priority of methods

Rules for transfer pricing in Brazil state that a taxpayer is free to use that method that results in the lowest taxable income for the taxpayer.

Documentation requirements

Information that should be included in the documentation:

  • Total transaction values for the
most traded products, services or rights
  • The names and locations of the related trading partners
  • The methodology used to test each transaction
  • The calculated benchmark price
  • The average annual transfer price and the amount of any resulting adjustment

The transfer pricing documentation requirements are strongly focused on specific transactions. Therefore, taxpayers should document their transfer prices on product code by product code, service type by service type and right-by-right bases.


All documentation in Brazil should be submitted in the Portuguese language. 

Requirements to prepare documentation annually

Rules for transfer pricing in Brazil prescribe that all the documentation requirements should be updated annually. The submission deadline for documentation is January 31 of the following fiscal year.

Submission deadline upon request by tax authorities

Upon request of the tax authorities, a taxpayer has 20 days to submit its documentation.

Advance Pricing Agreements


Rules for transfer pricing in Brazil do not provide for an option to obtain an Advance Pricing Agreement.


Not applicable.


Rules for transfer pricing do not provide for specific transfer penalties. This means that ordinary tax penalties apply. | the global transfer pricing reference guide