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Advance pricing agreements

Availability and eligibility

Are advance pricing agreements with the tax authorities in your jurisdiction possible? If so, what form do they typically take (eg, unilateral, bilateral or multilateral) and what enterprises and transactions can they cover?

Normative Ruling 1,669/2016 introduced the mutual agreement procedure in Brazil, in order to avoid double taxation in an attempt to align Brazil to the Organisation for Economic Cooperation and Development minimum standards.

Brazilian tax residents may submit a mutual agreement procedure request to the Federal Revenue Service if certain measures adopted by the countries involved have led or may lead to taxation contrary to the double tax treaties entered into between those countries.

Normative Ruling 1,669/2016, expressly recognises the possibility of the request of a mutual agreement procedure in the context of advance pricing arrangements, although there may be some practical difficulties since Brazil adopts fixed margins for various methods in contrast to other jurisdictions.

The mutual agreement procedure may have two phases:

  • a unilateral phase, in which the Federal Revenue Service receives and analyses the request made by the taxpayer; and
  • a bilateral phase, in which the Federal Revenue Service discusses the matter under request with the competent tax authority of the other country in order to find a solution of the case if it was not resolved in the unilateral phase or if it was raised by a request presented abroad.

As Normative Ruling 1,669/2016 was only recently enacted, it has not yet been applied in practice.

Rules and procedures

What rules and procedures apply to advance pricing agreements?



How long does it typically take to conclude an advance pricing agreement?


What is the typical duration of an advance pricing agreement?



What fees apply to requests for advance pricing agreements?


Special considerations

Are there any special considerations or issues specific to your jurisdiction that parties should bear in mind when seeking to conclude an advance pricing agreement (including any particular advantages and disadvantages)?


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