THE BRICS AND THE BEPS PROJECT: AN OVERVIEW FROM A BRAZILIAN PERSPECTIVE

Introduction: the present article is aimed at providing an overview of the Brazilian measures with regard to the BEPS Project and seeking the common perspectives Brazil may share with other BRICS countries. Methods: analysis, comparison, description, interpretation. Analysis: in its first part, the article addresses some aspects of the Brazilian legislation which are relevant for the BEPS Project Actions. In the second part, common evolutionary aspects of the treaty policies of the BRICS countries are presented, followed by considerations on the need for cooperation between the BRICS for more comprehensive reforms with regard to the digital economy. Results: even though Brazilian legislation is still silent with respect to a General Anti-Avoidance Rule (GAAR), Brazil has enacted important Special Anti-Avoidance Rules (SAARs). Besides, Brazilian transfer pricing policy presents relevant deviations from the OECD Guidelines. These deviations, if adequately interpreted, may offer a suitable solution to current feasibility problems of the application of transfer pricing legislation as addressed in the OECD Guidelines. It is also important to describe why Brazilian regime of taxation of controlled foreign companies cannot be considered as a SAAR. Furthermore, it is important to present Brazilian measures with regard to deductibility of interests, contrasting them with the measures of BEPS Action 4. Finally, the treaties in which Brazil has recently included specific anti-abuse provisions are addressed.