The Regional Superintendence of the Brazilian Revenue Service of the 6th Tax Region (SRRF6ª), through answer to consultation proceeding n. 4 of January 23, 2013, brought clarifications with respect to the event of a company headquartered abroad that carries out direct sales in Brazil through an attorney-in-fact having its profit arbitrated in Brazil.

In fact the solution to the consultation clarifies that in the case of sales carried out in Brazil, invoiced directly to the Brazilian purchaser, through a representative (resident or domiciled in the Brazil) of a legal entity domiciled abroad, who has power of attorney with authority to bind the seller under contract to the acquirer in the Brazilian territory, the foreign company´s profit in Brazil will be determined by applying the legally provided assumption percentage over the gross revenue, added by twenty per cent.

(Enquire Solution n. 4, Jan. 23. 2013, DOU-I, Jan. 31. 2013).