Brazil Transfer Pricing Measure Passes Senate, Nears Enactment (1)

Brazil is one step closer to moving into line with international standards on transfer pricing, after the country’s Senate passed a measure adopting new rules.

The Senate voted Wednesday to approve the provisional measure, which passed Brazil’s lower house, the Chamber of Deputies, in March. It will become law if President Luiz Inácio Lula da Silva signs it.

The new rules will take effect Jan. 1, 2024, with an option to apply them for 2023.

Brazil had long been an outlier in its approach to transfer pricing—the way companies value transactions between their related parties. It began the process of ...