Brazil: Initial BEPS guidance on dispute resolution | KPMG | US

Brazil: Initial BEPS guidance on dispute resolution; CbC consultation

Brazil: Initial BEPS guidance on dispute resolution

Guidance published in Brazil addresses dispute resolution standards pursuant to the base erosion and profit shifting (BEPS) project.

1000

Related content

Normative Ruling (NR) 1.669/2016 (published 10 November 2016) aims to regulate dispute resolutions under Brazil’s network of international tax treaties and conventions for the avoidance of double taxation, in accordance with BEPS Action 14 (making dispute resolution mechanisms more effective).  

The main aspects under NR 1.669/2016 include the following:

  • All taxpayers will be allowed to open a consultation process when they identify tax measures that results in double taxation.
  • When the resolved dispute results in a tax credit, the taxpayer will request the refund through a specific administrative procedure.
  • The tax administration will issue an implementation order that validates the resolution (even if the resolution resolves only part of the dispute).
  • The implementation of the resolution must be preceded by the acquiescence of the parties involved as well as an agreement to withdraw any pending appeals or lawsuits related to the disputed subject.

Consultation on country-by-country (CbC) reporting

Brazil’s federal revenue service announced a public consultation or comment period regarding the implementation of the country-by-country (CbC) reporting requirements in Brazil. The CbC report will be mandatory as from 2017, and will cover the transactions and business operations undertaken during calendar year 2016, for Brazilian multinational companies with consolidated revenue above BRL 2.26 billion or € 750 million.  The due date for the CbC report will follow the income tax return (ECF) calendar (currently 31 July after the end of the calendar year). The comment period will be open to taxpayer’s suggestions on the federal revenue’s website until 21 November 2016.

 

For more information, contact a tax professional in Brazil with KPMG’s Global Transfer Pricing Services practice:

Marienne Coutinho | +55 11 3940 3182 | mmcoutinho@kpmg.com.br

Eliete Ribeiro | +55 11 3940 3288 | eribeiro@kpmg.com.br

Carlos Toro | +55 11 3940 6569 | ctoro@kpmg.com.br

Edson Costa | +55 11 3940 5313 | edsoncosta@kpmg.com.br

© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit