Practical Guide for Submitting Transfer Pricing Documentation in Brazil

Sao Paulo, November 25, 2024

Compliance with transfer pricing regulations is essential for companies that carry out international operations. In Brazil, the regulatory framework was updated with Law No. 14,596/2023 and Normative Instruction RFB No. 2,161/2023 , aligning local practices with OECD guidelines. This article provides a detailed guide to facilitate the submission of the required documentation.

Introduction to the Submission Process

The transfer pricing documentation is sent through the e-CAC system , in the Digital Processes (e-Process) modality . This procedure applies to both the Global File and the Local File , which must meet specific criteria in terms of form and content.

Steps for Submitting Documentation

Below, we detail the steps necessary to ensure proper delivery:

1. Calendar Year Selection

• Requirement: Each calendar year must be submitted in a separate process.
• Corrections or Additions: If the documentation for a calendar year has already been submitted, changes must be made using the “ Document Attachment ” option.
• Restriction: Multiple applications may not be opened for the same year; duplicate applications will be automatically archived.

2. Attach Documents

• Format: All documents must be in PDF format, with a maximum size of 15 MB per file.
• Exceptions: Non-pageable files (e.g. spreadsheets) must be compressed in .zip format , with a maximum size of 150 MB per compressed file.

Specific Requirements by Document Type:

Document Type	Description	Specific Format
Global Archive	Information about the structure and activities of the multinational group.	According to Art. 58, IN RFB No. 2,161.
Complete Local Archive	Information on controlled transactions with a value ≥ R$500,000,000.	According to Arts. 59 and 60, IN RFB No. 2,161.
Simplified Local Archive	Information on controlled transactions valued between R$15,000,000 and R$500,000,000.	According to Art. 61, IN RFB No. 2,161.

Local File Details

Complete Local Archive

Applies to taxpayers with controlled transactions whose total value (before adjustments) exceeds R$500,000,000 .
Required documents include:

• Description of Taxpayer Activities: According to Art. 59, item I.
• Identification of Related Parties: As per Art. 59, item II.
• Transactions with Intangibles: As per Arts. 59 and 60.

Simplified Local Archive

Applies to taxpayers with controlled transactions between R$15,000,000 and R$500,000,000 . Required documents include:

• Identification of Related Parties: As per Art. 61, item I.
• Imports and Exports: As per Art. 61, items II-VI.

Submitting the Application

After attaching the documents, the taxpayer must generate the digital process in the e-CAC system, selecting:

• Option: “ Legislation and Processes ” – “ Digital Processes (e-Process) ”.
• Access: The process will be available for monitoring in the system.

Conclusion

Submitting transfer pricing documentation in Brazil, as per the new legislation, requires rigor in the preparation and presentation of information. Taking an organized and proactive approach not only ensures regulatory compliance, but also prevents significant sanctions.

Understanding technical details and implementing efficient practices are essential for tax management aligned with international best practices.

Yours sincerely

TP Consulting Brazil