Brazil Issues New Instructions for Commodities Transfer Pricing

Brazil released new information on how companies should handle transfer pricing for transactions involving commodities, after the government sought taxpayer input earlier this month.

The instructions released Monday by Receita Federal, the country’s revenue authority, include requirements for companies to register information about transactions involving commodities and to maintain documentation proving that transactions were done at arm’s length.

Transfer pricing refers to the valuation of transactions between related companies. Conducting transactions at arm’s length requires intragroup transactions to be priced similarly to transactions between unrelated companies.

• Brazil adopted new transfer pricing rules last year, effective this year, bringing ...