Brazil Amends Transfer Pricing Regulations
Brazil has introduced new Normative Instructions (NI) 1,312 regulating Transfer Pricing provisions. Brazilian organizations with a net income from related parties not exceeding 20% of the total export net income will have to maintain a minimum safe harbor rate of 10% (originally 5%).
Introduction of New Brazilian Tax on Gross Income Benefits 30 Business Sectors
From 2013, the new tax rate of 1% on gross income (which replaces the tax on payroll at 20%) will apply to an expanded list of business activities which include production of medical equipment, phone devices, meat, paint & varnish, beauty products, bricks, glass, iron and screws.
Brazilian Companies can Qualify for Accelerated Depreciation
The Brazilian government has regulated accelerated depreciation with the publication of Decree 7,854, effective from December 4, 2012. For corporate income tax purpose, companies evaluating their taxable income under the actual profit method will now qualify for accelerated depreciation.
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