On January 18, 2013, the Brazilian tax authority issued Legal Guidance 1.321/2013 providing transfer pricing safe harbor rules applicable to transactions involving exporting of goods for fiscal year 2012 (retroactive) and 2013.
2012 safe harbor transfer price for exports to related party will be met if net pre-tax profit of the Brazilian seller on such sales is at least 5% of the average gross sales revenues of the previous three years. The taxpayers may elect to calculate the 5% safe harbor based on actual sales revenue for the current year or the arithmetic average (based on a formula provided under the rules) of the sales revenues for the last three years.
2013 safe harbor transfer price for exports will be met if net pre-tax profit on export sales of at least 10% of export sales revenues. The government has released the mechanics of calculating the safe harbor for 2013.