BRAZIL Law and Practice Contributed by: Paulo Honório de Castro Júnior, Bruno Marques Feitosa, Matheus Di Felippo and Urick Soares, William Freire Advogados
6.2 Joint Audits Currently, Brazil does not have a specific treaty or reg - ulatory instrument that formally governs the practice of joint audits with other jurisdictions. 6.3 Simultaneous Controls There are no specific provisions on Simultaneous Controls within the Brazilian transfer pricing rules. At the end of 2024, the Brazilian Federal Revenue Service ( Receita Federal do Brasil – RFB) initiated a public consultation regarding the draft normative act intended to regulate the Brazilian Advance Pricing Agreement (APA) framework. Although the proposed text is comprehensive in scope, its provisions – par - ticularly Article 13 of the draft – establish the pos - sibility of exchanging information with other relevant tax jurisdictions, in accordance with the commitment undertaken by Brazil under Action 5 of the Base Ero - sion and Profit Shifting (BEPS) Project of the Organi - sation for Economic Co-operation and Development (OECD) and the Group of Twenty (G20). Brazil’s proposed APA framework reflects a clear pref - erence for a predominantly unilateral model. Although it represents an important step in consolidating the OECD-aligned transfer pricing regime, the agreement is primarily designed to be concluded between the Brazilian Federal Revenue Service and the taxpayer, without requiring the prior involvement of foreign tax authorities. While Brazil has indicated openness to bilateral or multilateral APAs – particularly with treaty partners – such arrangements are treated as possible extensions rather than as a structural feature of the system. In this sense, Brazil has chosen to implement an essentially unilateral APA model, albeit one that remains formally open to co-ordinated agreements with other jurisdic - tions. Notwithstanding the public consultation launched in 2024, no final or binding normative act regulating the Brazilian APA framework has yet been formally issued by the RFB.
(w) Luxembourg; (x) Mexico; (y) Norway; (z) Netherlands; (aa) Peru; (ab) Portugal; (ac) Czech Republic; (ad) Russia; (ae) Singapore; (af) Sweden; (ag) Switzerland; (ah) Trinidad and Tobago; (ai) Türkiye; (aj) Uruguay; (ak) Ukraine; and (al) Venezuela. • Tax Information Exchange Agreement – TIEA, developed by the OECD Global Forum in 2002 and deals with the exchange of tax information. • Convention on Mutual Administrative Assistance in Tax Matters, signed by the member states of the Council of Europe and the member countries of the OECD, promulgated through Decree No 8,842/2016. • FACTA – Foreign Account Tax Compliance Act, Agreement signed between Brazil and the USA, promulgated through Decree No 8,506/2015, which provides for the regulation of tax accounts and investments that are outside the United States, but that belong to North American citizens (US per - sons). • Argentina – Agreement on the Exchange of Infor - mation for Tax Purposes Relating to Previous Periods. • United Kingdom – Agreement for the Exchange of Information Relating to Taxes. • Switzerland – Agreement for the Exchange of Infor - mation Relating to Taxes. Finally, customs co-operation agreements must also be mentioned – mutual recognition agreements and technical co-operation agreements, through which there is mutual dialogue and collaboration between Brazilian tax authorities and other jurisdictions.
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