Brazil Says Country-by-Country Declarations Due July 31

Trust Bloomberg Tax for the international news and analysis to navigate the complex tax treaty networks and global business regulations.

By Ed Taylor

Brazil’s federal revenue service has clarified the country-by-country requirements to be prepared annually by multinational companies operating there, setting a July 31 deadline for the first filings.

The clarification was contained in Normative Instruction 1722, published July 27. The first country-by-country declaration must be filed based on data from 2016. It will be required of all multinational firms whose total group consolidated income was equal to or greater than $717 million the previous year.

The Brazilian units of American multinationals were in doubt as to how to prepare their declarations, since the U.S. had not signed the OECD’s multilateral agreement to exchange of country-by-country reports. But in addition to the normative instruction, the revenue service also released a statement confirming that the two countries signed an agreement July 21 to exchange the country-by-country reports.

“The text of the agreement will be published in the Official Gazette shortly so that it can be placed on the sites of the Brazilian and American revenue services,” the statement said.

For attorney Murillo Pires, in charge of tax compliance for the Brazil unit of Chicago-based Grant Thornton International, the statement and the normative instruction have made it clear that American firms in Brazil must meet the July 31 deadline.


“Companies must declare who is the controller responsible for this information, the number of its registration and where it is located in the U.S.,” Pires said in a July 28 email to Bloomberg BNA.

The declaration itself must contain information on where the company operates outside of Brazil, where it allocates its earnings, what taxes it pays, what taxes it owes, as well as other financial and operational information. Companies will have to identify all other members of their group and their economic activities.

According to attorney Alexandre Siciliano of the law firm Lobo & de Rizzo, the normative instruction also clarifies that companies from Great Britain, France, Spain and other countries that have agreed to provide the full country-by-country declaration only in 2018, based on information from 2017, must provide information on their controller and its country by the July 31 deadline.

Attorney Luis Eduardo Schoueri of the firm Lacaz Martins added that if these countries don’t reach an agreement by the end of the year to provide information for 2016, companies from these countries will be required to provide this information or to indicate “a substitute company located in a country with which Brazil has an agreement to turn over this information.”

The country-by-country declaration is part of Brazil’s commitment to the Organization for Economic Cooperation and Development’s project to combat base erosion and profit shifting, including implementing country-by-country reporting under BEPS Action 13.

To contact the reporter on this story: Ed Taylor in Rio de Janeiro at

To contact the editor responsible for this story: Penny Sukhraj at

For More Information

The text of normative instruction 1722 can be found at the following link:

Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.

Request International Tax