Brazil: Tax amnesty; tax-structured transactions | KPMG | GLOBAL

Brazil: Tax amnesty; disclosing tax-structured transactions

Brazil: Tax amnesty; tax-structured transactions

A tax amnesty program in Brazil has been established to allow taxpayers to resolve certain federal tax debts that accrued before 30 June 2015.


Related content

Provisional Measure MP 685/2015 introduced the tax amnesty program (known as the “PRORELIT” program) and allows taxpayers to resolve all but those federal tax debts that are subject to installment payments. Applications for participation in the program must be submitted before 30 September 2015. In order to participate in the amnesty program, taxpayers must made a cash payment of at least 43% of their outstanding consolidated tax debt as accrued through 30 June 2015. The remaining 57% of the debt may be “settled” with net operating losses (NOLs). 

In Brazil, a Provisional Measure is an “act” issued by the president, with the authority of law until later approved by Congress. The Provisional Measure is effective as from its date of publication for 60 days, and it may be extended for an additional 60-day period (for a total of 120 days) on a request from Congress.

New disclosure obligations

Provisional Measure MP 685/2015 introduced a potential new tax filing obligation (known as “DLPAT”). This program requires Brazilian companies to report transactions conducted in the prior fiscal year that resulted in exclusion, reduction, or deferral of taxes, in the following cases:

  • Transactions lacking a non-tax business purpose
  • Transactions structured in such a manner, or containing clauses or structures that misrepresent, the typical effects of the contract
  • Any other transactions later specified by the tax authority (RFB) that involve certain identified actions or legal transactions

KPMG observation

The DLPAT filing appears to be an attempt to increase tax revenue in Brazil. Some believe that it may also be in response to the OECD’s BEPS Action 12 (Mandatory Disclosure Rules), even though Brazil is not a full member of the OECD.

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