The PECEX Method

Tamanho: px

Começar a partir da página:

Download "www.pwc.com.br The PECEX Method"

Vítor Gabriel Nobre Galvão
8 Há anos
Visualizações:

1 The PECEX Method

2 Comparison between Brazil and OECD approach Main aspects of Brazilian TP rules as compared with OCDE Guidelines: Sixth Method Few countries adopt the Sixth Method for commodities, including Argentina, Uruguay, Dominican Republic, El Salvador, Guatemala, Chile, Panama, Peru, Colombia and India. 2

the Sixth Method for commodities, including Argentina, Uruguay, Dominican

3 Methods applicable to Exports Methods applicable to exports of goods, services or rights Export Sales Price Method ( PVEx ) Resale Price Methods ( PVA or PVV ) - Wholesale - margin of 15% - Retail margin of 30% Purchase or Production Cost Plus Taxes and Profit Method ( CAP ) - Margin of 15% Prices of commodities subject to quote on exports ( PECEX ) - Mandatory method for commodities Safe Harbors not applicable to exports of commodities. 3

Purchase or Production Cost Plus Taxes and Profit Method ( CAP ) - Margin of 15% Prices of commodities subject

4 PECEX Brazilian Regulation Timeline IN (March, 2014) - Adjustments related to tax at destination port IN (December, 2013) - Adjustments related to the destination port IN (September, 2013) - Commodities definition - Inclusion of other possible adjustments (payment terms, negotiated quantity, climate influences, intermediation costs, packaging, fright and insurance) - Inclusion of concept of regional reference prices IN (December, 2012) - PECEX regulation; - Divergence margin 3%; - Appendix I, II and III Law conversion of MP into Law (September, 2012) - PECEX Method optional for FY 2012 and mandatory as of FY 2013 Provisional Measure (MP) 563 (April, 2012) - Introduction of PECEX Method on Brazilian TP rules Law (December, 1996) Introduction of Brazilian TP Rules 4

insurance) - Inclusion of concept of regional reference prices IN 1.312 (December, 2012) - PECEX regulation; - Divergence margin 3%; - Appendix I, II and III Law 12.

5 Brazilian Transfer Pricing rules for Commodities Commodities PECEX Method Exports of commodities, quoted in commodities exchange market, must be tested through the use of the PECEX Based on this method the taxpayer shall compare: Transactions value X Daily average quote for the product The quotes should be adjusted based on the average market premium, which comprise: - market valuation - variations in quality, characteristics and substance content. 5

compare: Transactions value X Daily average quote for the product The quotes should be adjusted based on the

6 Brazilian Transfer Pricing rules for Commodities Commodities PECEX Method Besides the market premium, the commodity value can be adjusted by: differences between the value supported by the seller X the standard specifications of the commodity exchange market 6

be adjusted by: differences between the value supported by the

7 Brazilian Transfer Pricing rules for Commodities Commodities PECEX Method Authorized adjustments for business conditions: a) terms of payment b) negotiated quantity c) climate influences in the characteristics of the exported good d) intermediation costs on purchase and sale transactions carried out by unrelated entities e) packaging f) freight and insurance and g) cost of landing at the port, internal transport, storage and customs clearance including taxes and import all the target market commodity 7

costs on purchase and sale transactions carried out by unrelated entities e) packaging f) freight and insurance and g) cost of

8 Brazilian Transfer Pricing rules for Commodities Commodities PECEX Method In the absence of quote in the exchange market, the taxpayer may choose to test the transactions using information obtained from independent sources, provided by internationally recognized institutes involved in researches of specific sectors Normative Instruction 1.312/12 contains Attachments listing: - products that should be considered commodities for purposes of the method (not exhaustive) - the commodities exchanges markets and - the publications that can be used to apply the methods The divergence margin accepted for commodities is 3%. 8

9 PECEX Methodology - Summary The PECEX Method is a prescriptive method that shall be calculated based on a quoted exchange price, with the ability to make two types of adjustment: market premium and business conditions and include a divergence margin. Parameter Price Calculation Product Quote Market Premium Detail Example / Documentation Adjustments to account for differences between the quoted exchange price and information e.g. Platts or Metal Bulletin obtained from independen sources. Difference between commodities exchange market quotes and independent (+/-) Market valuation source publication (+/-) Quality Calculation based on publication (+/-) Characteristics of the product Calculation based on publication (+/-) Substance Content Calculation based on publication (+/-) Terms of payment Discounts based on contracts with third (+/-) Negotiated quantity parties or studies based on third party contracts Business Conditions (+/-) Climate influences in the characteristics (+/-) Intermediation costs (+/-) Packaging Contracts with third parties or Baltic Dry (+/-) Freight and insurance Index (BDI) (+/-) Costs of landing Minimum taxable price Minimum taxable export price (parameter price) Divergence Margin 3% 9

Parameter Price Calculation Product Quote Market Premium Detail Example / Documentation Adjustments to account for differences between the quoted exchange

10 PECEX Method Data Sources In practical terms there is effectively a hierarchy of data sources to determine the reference price: An index price is always first; A reported price (e.g. Platts, Metal Bulletin) next; The company s own data on prices; and Independent third party transactional data. 10

11 PECEX Method Data Sources A company s own third party data can however provide evidence of price adjustments for example: Quality premiums/discounts on specific products; Adjustments based on quantity or risk profile The cost of intermediation, where sales are to a related party marketer/trader. Independent transactional data may be used to support internal data on: costs of intermediation; and Independent third party transactional data. 11

The cost of intermediation, where sales are to a related party marketer/trader.

12 Brasil Brasil 2014 PricewaterhouseCoopers Brasil Ltda. Todos os direitos reservados. Neste documento, refere-se à PricewaterhouseCoopers Brasil Ltda., a qual é uma firma membro do network da PricewaterhouseCoopers, sendo que cada firma membro constitui-se em uma pessoa jurídica totalmente separada e independente. O termo refere-se à rede (network) de firmas membro da PricewaterhouseCoopers International Limited (IL) ou, conforme o contexto determina, a cada uma das firmas membro participantes da rede da. Cada firma membro da rede constitui uma pessoa jurídica separada e independente e que não atua como agente da IL nem de qualquer outra firma membro. A IL não presta serviços a clientes. A IL não é responsável ou se obriga pelos atos ou omissões de qualquer de suas firmas membro, tampouco controla o julgamento profissional das referidas firmas ou pode obrigá-las de qualquer forma. Nenhuma firma membro é responsável pelos atos ou omissões de outra firma membro, nem controla o julgamento profissional de outra firma membro ou da IL, nem pode obrigá-las de qualquer forma.

O termo refere-se à rede (network) de firmas membro da PricewaterhouseCoopers International Limited (IL) ou, conforme o contexto determina, a cada uma das firmas membro participantes da rede da.

Documentos relacionados

TRANSFER PRICING IN BRAZIL. Ana Beatriz Nunes Barbosa

TRANSFER PRICING IN BRAZIL. Ana Beatriz Nunes Barbosa TRANSFER PRICING IN BRAZIL Ana Beatriz Nunes Barbosa What is transfer pricing? A transfer or intercompany price is a price set by a taxpayer when selling to, buying from, or sharing resources with a related