Brazilian Federal Revenue Service issues Normative Instruction regulating the new Transfer Pricing rules
On September 29, 2023, the Brazilian Federal Revenue Service issued Normative Instruction 2.161 (IN 2.161) regulating the new Transfer Pricing rules introduced by Law 14.596/23. The application of the new rules will be mandatory as of January 1, 2024.
IN 2.161, which was issued after a public consultation which allowed for the submission of suggestions to the draft, regulates the general provisions of the new rules introduced by Law 14.596/23.
The specific provisions of the new rules will be regulated in the future by the Brazilian Federal Revenue Service.
Regarding the option for the early implementation of the new Transfer Pricing rules as of 2023, IN 2.161 establishes that such option must be formalized from September 1 to December 31, 2023, through a digital process in the e-CAC portal. As provided for in the law, the option is irreversible and results in the application of all the new rules for the whole year of 2023.