Who this guide is for
This guide is for foreign companies that plan to open, acquire or keep an operation in Brazil and to do business between the companies of the group.
It is common for the parent to supply software, centralise administrative services or finance the Brazilian company. The opposite can also happen: the Brazilian team provides services or develops products for the group abroad.
In these situations, it is not enough to agree on an amount internally. You need to check whether the conditions of the operation meet the Brazilian transfer pricing rules.
Short answer. Since January 2024, Brazil applies mandatorily the new model of Law 14,596/2023, based on the arm's length principle.
The idea is simple: operations between related companies must be assessed by the conditions that independent companies would accept in comparable situations.
These rules affect the calculation of corporate income tax, the IRPJ, and of the social contribution on net profit, the CSLL.
Transfer pricing is not a fee charged for sending money abroad. It is a set of rules to check whether the results taxed in Brazil reflect adequate conditions in the operations with related parties.
General information as of October 2026. Confirm your case with your advisors.
What changed in 2024?
The previous system used methods with predetermined margins in many operations. The new model requires an analysis closer to the economic characteristics of each business.
This involves identifying what each company does, which assets it uses and which risks it takes. Then the most appropriate method is chosen to assess the operation.
The law repealed articles 18, 19 and 22 of Law 9,430/1996, which held the old rules, and applies to facts from January 1, 2024 (see the PGFN page on transfer pricing).
For a foreign group, the change has a practical consequence: the international pricing policy must be checked against the Brazilian rules.
A contract or study prepared by the parent can help, but it must reflect the local operation and meet the requirements that apply in Brazil.
What does arm's length mean?
Imagine that the parent charges the Brazilian company for technology support.
The analysis must answer questions such as:
- Was the support actually provided?
- What benefit did the Brazilian company receive or expect to receive?
- Would an independent company pay for this service?
- Are the amount and the conditions compatible with a comparable operation?
There is not necessarily a single correct price for every situation. The result depends on the characteristics of the operation and on the quality of the information used.
The comparison is also not limited to the price: payment terms, guarantees, volume, responsibilities and risks can influence the conditions that independent parties would accept.
Which operations are covered?
The operations subject to the analysis are called controlled transactions. Between a Brazilian company and its group abroad, examples include:
| Operation | What needs to be examined |
|---|---|
| Administrative or technical services | Deliverables, benefit for the recipient and how the payment is formed. |
| Licences of software, brands and other rights | Rights granted, functions of the companies and the criterion of charge. |
| Loans and guarantees | Interest, term, currency, credit risk and other conditions. |
| Purchase and sale of goods | Characteristics of the products, volumes, markets and responsibilities. |
| Cost sharing | Participation of each company and expected benefits. |
| Group restructurings | Transfer of functions, assets, risks or business opportunities. |
The analysis covers amounts paid and amounts charged by the Brazilian company.
Having foreign capital does not, by itself, define all the obligations. You need to identify the transactions carried out and the relations between the parties. The law also reaches certain operations with entities in favoured-tax jurisdictions or under privileged tax regimes. See our guide on the software licence for one of the most common cases.
Intragroup services: what needs to be proven?
Intragroup services are activities provided by one company for the benefit of another in the same group.
They can include accounting support, human resources, technology and other centralised functions.
The documentation must show the service and its usefulness for the Brazilian company. A charge described only as a "management fee", with a generic invoice, may be insufficient.
Depending on the activity, the evidence can include reports, service records, deliverables, hours worked and the record of costs.
If the parent serves several companies, you also need to explain how the cost was divided. The criterion must relate to the benefits received or expected.
Expenses that come from the position of shareholder, and duplicated activities, call for attention: not every cost of the parent corresponds to a service that the subsidiary should pay for.
Is there a simplified approach?
Yes. The regulation provides a simplified approach for certain low value-added intragroup services.
These are support activities that meet the requirements of the rule. "Low value-added" describes the nature of the activity; it does not simply mean a small charge.
The simplification does not automatically cover software development, senior management, commercial activities or the group's core functions.
In the approach set in Normative Instruction RFB 2,161/2023, the margin on costs has different limits: at least 5% when the provider is in Brazil and at most 5% when it is a related party abroad.
This does not authorise applying 5% to any charge. The framing, the costs, the benefit and the criterion of allocation must be demonstrated (see the text of the instruction).
What happens when the amount needs to be adjusted?
The price recorded in the contract or in the accounts can require an adjustment for tax purposes.
For example, if an expense with the group exceeds the amount accepted by the analysis, the difference can increase the Brazilian taxable base, under the applicable rules.
You need to distinguish an adjustment in the calculation of the tax from an actual change in the price, in the invoice or in the payment between the companies.
You also should not assume that a transfer pricing adjustment automatically changes the taxes that apply to the remittance or to the import. Each tax has its own rules.
What must the Brazilian company prepare?
The organisation should start before the annual closing:
- Map of the operations. Identify the companies involved, the countries, the amounts and the nature of the transactions.
- Contracts consistent with practice. Describe rights, deliverables, responsibilities and financial conditions.
- Justification of the remuneration. Record the method used, the data considered and the calculations.
- Evidence of performance. Keep documents that show the services, supplies and benefits.
- Consistent tax information. Reconcile the studies with the accounting and the Brazilian declarations.
Depending on the volume and on the conditions set in the regulation, the delivery of the Local File and the Master File may also be mandatory.
The Local File details the relevant operations of the Brazilian company. The Master File presents information on the multinational group.
The Receita states that these files must be delivered when the controlled transactions of the previous year reach R$ 15 million, subject to the applicable criteria. Being below this limit does not, by itself, remove the transfer pricing rules (see the Receita Federal service on transfer pricing documentation).
What is an advance pricing agreement?
Known by the acronym APA, it is an instrument to establish in advance criteria for assessing certain operations.
Its aim is to give greater predictability on the methodology, according to the applicable procedure and conditions.
It is not a general authorisation for any price, and it does not replace the proof of the facts that support the analysis.
For recurring and relevant operations, it can be an alternative to assess. Before planning its use, you need to confirm the regulation in force and the requirements of the procedure. A draft for public consultation should not be treated as a final rule.
How does this relate to remittances?
An operation can have two simultaneous analyses:
- Transfer pricing: checks its conditions for IRPJ and CSLL.
- Taxation of the payment: checks the withholdings and other taxes that apply to the operation.
Meeting the first does not dispense with the second. Our guide on sending money out of Brazil compares the routes.
The remittance calculator helps estimate scenarios with the amounts entered, but it does not replace a comparability study and does not prove that the price meets the law.
The simulation result is free to see; the PDF report is available to subscribers.
Legal basis and sources
Rules and guidance used in this guide, checked in October 2026:
- Law 14,596/2023: the transfer pricing rules, based on the arm's length principle, in force for facts from January 1, 2024.
- Normative Instruction RFB 2,161/2023: regulation, including the simplified approach for low value-added intragroup services.
- PGFN, transfer pricing: repeal of articles 18, 19 and 22 of Law 9,430/1996 by Law 14,596/2023.
- Receita Federal, transfer pricing documentation: Local File and Master File.
- Receita Federal and OECD, the new transfer pricing system: background of the reform.
How we work
Move Advisory is the consulting area of Move Online, an accounting firm in São Paulo founded in 2017.
In the diagnosis, we map the operations with the group, assess the documentation available and identify the analyses needed.
In the operation, we organise the accounting records and the declarations contracted, considering the criteria defined and the coordination with those responsible for the group's international policy. See the services page.