The OECD and Brazil are to examine similarities and gaps between the Brazilian and OECD approaches to valuing cross-border transactions for tax purposes. According to the OECD, the project will also assess the potential for Brazil to move closer to the OECD’s transfer pricing rules.

The 15-month work programme will analyse the legal and administrative framework behind the Brazilian transfer pricing system, as well as its implementation, according to the OECD’s press release. It will examine the strengths and weaknesses in the Brazilian approach while exploring options for greater alignment with the OECD’s internationally accepted standard, the OECD Transfer Pricing Guidelines. While Brazil is a member of the G20, it is not a member of the OECD but it is a member of the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes and the Inclusive Framework on BEPS.