Brazil Changes Transfer Pricing Margins, Declines to Apply Rules to Mining Sector
October 1, 2012 in Transfer Pricing Report
Ed Taylor
RIO DE JANEIRO—Brazilian President Dilma Rousseff Sept. 18 sanctioned a major tax law that—among other things—changed the calculation of profit margins for products imported from related companies, but vetoed an article that would have applied the transfer pricing rules to the mining sector.
Law 12715 reduced the profit margin used to determine the taxation on imported industrial inputs, lowering it from the previous level of 60 percent to either 20 percent, 30 percent, or 40 percent, depending on the business sector. The same 20-30-40 percent categories were set for finished products…
Enjoying this article? To continue reading you need to take out a FREE trial to the Transfer Pricing Library.
Already a subscriber? Sign in here
Disclaimer
Related Articles:
- Administrative Court Finds Semp Toshiba Must Follow Pricing Formula in Norm 243
- Germany: Gift tax risk
- Denmark: Tightening grip on MNEs
- Tax Court of Canada Significantly Reduces Assessment to Printed Circuit Board Maker
- Indonesia: New guidance on transfer pricing rules
