Foreign trade tax reform becomes law

Measure, approved by the Chamber and the Senate, brings legal certainty to the orange juice exporting sector

16.06.2023 | 13:55 (UTC -3)
CitrusBR, Cultivar edition

On June 15th, Provisional Measure 1152/22 was sanctioned, which becomes Law 14.596/23. The text puts into effect the so-called “Foreign Trade Tax Reform”. The measure changes the rules for so-called transfer pricing, a method used for two companies from the same group, but located in different countries.

In practice, the new law equates the Brazilian tax system with the best international tax practices and, technically, prepares Brazil to join the OECD. “The new text brings legal certainty and predictability”, says the executive director of CitrusBR, Ibiapaba Netto.

According to the vice-president of the Parliamentary Front for Agriculture, deputy Arnaldo Jardim, the new rule puts Brazil back on the path of developing international trade because it brings transparency to the entire process and tax justice for both those who pay and those who collect. 

The matter will be dealt with by infra-legal provisions to clarify administrative procedures.

LS Tractor February