In June, Brazil enacted a new transfer pricing law that has set off alarm bells among the country's business community due to a technical provision of the law. This legislation aligns Brazil with international standards, mandating how companies determine transaction prices between related entities. Under the new law, companies are now obligated to adhere to the "arms-length standard," compelling related entities to conduct business as if they were entirely unrelated.
The transfer pricing law details several options for calculating transactions between entities, advising companies to choose the “most appropriate method” for them. A&M's Antonio Macias Valdes speaks with Bloomberg Tax, giving insights on the use of the comparable uncontrolled price method.
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