THE CONSEQUENCES OF LIMITING THE DEDUCTION OF EXPENSES WITH TECHNICAL SERVICES AND ROYALTIES INCURRED BY BRAZILIAN COMPANIES: DISCOURAGING THE INVESTMENT IN TECHNOLOGY

Authors

  • Helena Trentini

DOI:

https://doi.org/10.46801/2595-6280-rdta-45-7

Keywords:

TRANSFER PRICING, ROYALTIES, TECHNICAL SERVICES, DEDUCTION LIMITS

Abstract

This article aims to analyze the consequences of the deductibility’s limitation by Law of expenses with technical services and royalties incurred by Brazilian companies and paid to a non-resident. For this purpose, we review the Brazilian transfer pricing rules, and the rules that prescribe the deductibility’s limits for technical services and royalties applicable to outbound payments. Thereby, we will conclude these consequences could be harmful to the Brazilian economy and the necessity of their harmonization with the international system of transfer pricing, based on the “arm’s length” principle.

Author Biography

Helena Trentini

Doutoranda em Direito Tributário e Financeiro pela Universidade de São Paulo. Advogada em São Paulo.

Capa revista direito tributário atual 45

Downloads

Published

2020-05-01

How to Cite

Trentini, H. . (2020). THE CONSEQUENCES OF LIMITING THE DEDUCTION OF EXPENSES WITH TECHNICAL SERVICES AND ROYALTIES INCURRED BY BRAZILIAN COMPANIES: DISCOURAGING THE INVESTMENT IN TECHNOLOGY. Revista Direito Tributário Atual, (45), 155–173. https://doi.org/10.46801/2595-6280-rdta-45-7

Issue

No. 45 (2020)

Section

Doutrina Nacional (Double Peer Reviewed)

License

Copyright (c) 2020 Helena Trentini

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

O autor (ou coautor) declara que o artigo submetido à avaliação, que segue em anexo, é de sua autoria, e inédito, comprometendo-se a não publicar este artigo em qualquer outro meio, impresso ou digital, mantendo a exclusividade para a Revista Direito Tributário Internacional Atual, cedendo, em caso de aprovação do trabalho, os direitos autorais à Revista para fins de publicação do trabalho nesta edição.