The Brazilian Federal Revenue Service (Receita Federal, RFB) has issued Normative Instruction RFB No. 2,246/2024, which amends the previous regulations on Transfer Pricing (TP) in commodity transactions between Brazilian companies and related parties abroad. This new regulation, which comes into effect on January 1, 2025, aims to ensure that transfer prices align with market practices and the arm’s length principle.
Among the main modifications, the obligation to assess whether the pricing mechanism in contracts for recurring or long-term deliveries is in line with market practices at the time of the contract’s conclusion stands out. This includes considering market trends, economic forecasts, and other relevant information that demonstrate that unrelated parties would enter into similar contracts under comparable circumstances.
The regulation also establishes detailed requirements for the registration of controlled export and import transactions of commodities. Companies must provide information about the contract, the parties involved, transaction details, the price or pricing criteria, and the reference sources used. This registration must be carried out regardless of whether the Comparable Uncontrolled Price (CUP) method is used and also applies to contracts concluded before 2025 that serve as the basis for transactions from January 2025 onwards.
Additionally, the rectification of information in the register is allowed in case of proven errors, with specific deadlines for correcting the data. The regulation also contemplates penalties for non-compliance with registration obligations, including fines for late submission or failure to meet the established requirements.
The Layout Guidance Manual of the Registry of Transactions with Commodities (RTC), which will detail the rules for validation and rectification of the register, will be published by the General Coordination of Programming and Studies (Copes) through an Executive Declaratory Act. This manual will provide additional guidelines to ensure proper compliance with the regulation.
In summary, Normative Instruction RFB No. 2,246/2024 represents a significant effort by the Federal Revenue Service to align Brazil’s TP practices with international standards, promoting transparency and fairness in commodity transactions and strengthening the national tax system.