Brazil has adopted Country-by-Country Reporting (CbCR) as part of its commitment to the OECD/G20 Base Erosion and Profit Shifting (BEPS) Action 13 framework. The requirements apply to certain multinational enterprise (MNE) groups operating in Brazil and are governed by specific Brazilian tax regulations.

This guide outlines Brazil’s CbCR obligations, including the regulatory framework, filing procedures, applicable thresholds, and penalties for non-compliance.

Regulatory Framework

• Authority: Receita Federal do Brasil (RFB – Brazilian Federal Revenue Service)
• Legislation:
  • Normative Instruction RFB No. 1,681/2016
  • Subsequent updates and clarifications from the RFB
• International Participation:
  • Brazil is a member of the OECD Inclusive Framework and a signatory to the Multilateral Competent Authority Agreement (MCAA)

CbCR Filing Requirements

• Who Must File:
  • MNE groups with consolidated revenue equal to or greater than BRL 2.26 billion in the previous fiscal year
  • Brazilian entities must file the CbC report if:
    • The ultimate parent entity is resident in Brazil, or
    • No filing is made in the jurisdiction of the ultimate or surrogate parent entity
• CbCR Submission:
  • Filed as part of the ECD (Escrituração Contábil Digital) or the ECF (Escrituração Contábil Fiscal), depending on the type of taxpayer
  • Due annually, by the last business day of July of the year following the fiscal year covered
• Format and Platform:
  • Reports must follow the OECD XML schema and be submitted electronically via the RFB platform

Penalties for Non-Compliance

• Failure to file or incomplete/incorrect filing:
  • Fines range from BRL 500 to BRL 1,500 per month depending on the company size and filing status
  • Additional penalties may apply for false or misleading information

Important Considerations

• Entities should maintain consistency between CbCR and other transfer pricing documentation
• Brazilian tax authorities may exchange CbC reports with other jurisdictions under the MCAA
• Brazilian regulations follow OECD guidance but also require alignment with local transfer pricing norms

Useful Resources

• Receita Federal do Brasil (RFB): https://www.gov.br/receitafederal
• CbCR Normative Instruction (Portuguese): https://normas.receita.fazenda.gov.br/sijut2consulta/link.action?naoPublicado=&idAto=77415&visao=anotado
• OECD CbCR Portal: https://www.oecd.org/tax/beps/country-by-country-reporting.htm