TRPRIC - Transfer Pricing Report

01. OVERVIEW

The Transfer Pricing Report (MATR933) is available. Through the common rules for import costs, it presents the calculation of the import parameter price by the PRL - Resale Price Less Profit method for 20%, 30%, 40%, and 60%.

It provides for the prices to be charged in the purchase and sale transactions of goods, services, or rights, by an individual or legal entity resident or domiciled in Brazil, with an individual or legal entity resident or domiciled abroad, considered associated. In this routine, a report is made available for calculation of the parameter price by means of the PRL method for 20% and 60%.

Transfer Pricing consists of a set of rules that aim to avoid overpriced imports and under-invoiced exports, i.e. when imports are above the prices elected as parameters, and exports with prices charged below the said parameter prices.

Rules apply to operations between associated people, including:

Individuals living in Brazil associated with individuals living in Brazil;
Individuals living in Brazil associated with individuals living abroad;
Individuals living in Brazil associated with corporations located in Brazil;
Individuals living in Brazil associated with corporations based on Brazil;
Corporations based on Brazil associated with corporations based on Brazil;
Legal entities based on Brazil associated with legal entities based abroad.

02. SETUP PROCEDURES

In the Configuration Tool (SIGACFG), access Environment/Files/Menus and add, to the menu of module Tax Records (SIGAFIS), as specified below:

Menu Name	Sub-menu	Routine Name	Program	Tables
Reports	Official Tax Records	Transfer Pricing	MATR933	SA1, SA2, SB1, SD1, SD2, SG1, SF1, SF2

In the Configuration Tool (SIGACFG), go toEnvironment/Files/Parameters and add/configure the parameters as specified below:

Name	MV_REVENDA
Content	<defined by customer>
Type	Character
Description	CFOPs that must be processed in the treatment of the outputs for the calculation of Transfer Pricing.

CFOPs must be separated by slashes ( / ).

Example: 5101/6101/7101

If the MV_REVENDA parameter is not created, only CFOPs 5101, 6101, and 7101 defined internally in the routine will be processed.

Name	MV_EASY
Type	Character
Content	<defined by customer>
Description	Set whether Purchase and Import modules will be integrated.

In order for the Purchase and Import modules to be integrated, the MV_EASY parameter must be configured.

Suggestion: S

Therefore, the MV_R933AD0 parameter will not need to be created for Transfer Pricing Report generation.

If the MV_EASY parameter is not enabled, see the correct configuration of the MV_R933AD0 parameter.

Name	MV_R933AD0
Content	<defined by customer>
Description	Table SD1 field that contains the import tax value for the Transfer Pricing calculation.
Type	Character

Example: D1_IMP_II

If the MV_R933AD0 parameter is not created, the report's Add value will be displayed with zero content. An existing and valid field must be entered from table SD1. If the field entered in the parameter does not exist, a screen with an alert message appears.

Name	MV_TRANSPC
Type	Numeric
Content	<defined by customer>
Description	Defines which percentage is applied in the PRL method. Transfer Pricing report.

Example of content: 20

From the Configuration Tool (SIGACFG), go to Environment/Dictionary/Database and add/configure the fields as specified below:

Table SD1 – Inbound Document Items

Field	<field according to the customer>
Type	Numeric
Length	14
Decimal	2
Format	@E 99999999999.99
Title	Tax Import
Description	Import Tax
*Help*	The value of the item's import tax on the incoming invoice
Suggestion of content	D1_IMP_II

Table SB1 - Products File

Field	B1_PRDORI
Type	Character
Length	15
Decimal	0
Format	@!
Title	Original Prod. Code
Description	Code of the original product
*Help*	Used to issue the Transfer Pricing report when the product in the output is different from the product in the input. Enter the code of the product used in the input.

Field B1_PRDORI is required to generate the report for a situation where a product code is used in the input and another one in the output.

Field	B1_POSIPI
Type	Character
Length	10
Format	@R 9999.99.99
Valid	Vazio() .Or. If(cModulo$"EEC/EDC/EIC",ExistCpo("SYD",M->B1_POSIPI),.T.)
Title	Pos. IPI/NCM
Description	Ext Nomenclature Mercosur
*Help*	Description of the position of the IPI paragraph. This program is used so that, at the end of the year, the listing of purchases and sales by IPI position (DIPI) is issued.

Field	B1_PORCPRL
Type	Character
Length	2
Title	Perc. PRL
Description	PRL Percentage
*Picture*	@!
Context	Real
Ownership	Edit
Validation	Vazio() .Or. Pertence("20/30/40")
Options	20=20%;30=30%;40=40%
Used	Yes
Browser	No
Mandatory	No
*Help*	The percentage applied to the PRL method used to calculate the PRL import cost. Valid values=20, 30, or 40.

The B1_PORCPRL field allows you to enter the percentage applied to the PRL method used to calculate the PRL import cost for printing the Transfer-Pricing report.

Field	B1_ORIGEM
Type	Character
Length	1
Title	Source
Description	Product Source
*Picture*	@!
Context	Real
Ownership	Edit
Validation	Vazio() .Or. ExistCpo("SX5","S0"+M->B1_ORIGEM)
Options	20=20%;30=30%;40=40%
Query	S0
Used	Yes
Browser	No
Mandatory	No
*Help*	Enter the source code of the goods according to table A of the Tax Status. Table A - Source of Goods or Service: 0- National 1-Foreign - Direct Import 2-Foreign - Acquired in the domestic market 3-National, commodity, or item with import content exceeding 40% 4-National whose production has been made in accordance with the basic productive processes covered by Decree-Law No. 288/67, and Statute Nos. 8,248/91, 8,387/91, 10,176/01, and 11,4 5-National, goods or asset with import content less than or equal to 40% 6-Foreign - Direct Import, without similar national product, constant in CAMEX Resolution List 7-Foreign - Acquired in the domestic market without a similar national, listed on CAMEX Resolution

Table SA2 – Suppliers File

Field	A2_VINCULO
Type	Character
Length	2
Format	@!
Valid	ExistCpo("CC1")
Title	L. Person
Description	Linked Person
*Help*	Indicate the type of commercial link between the participant and the issuer, if any. This information is used in the Transfer Price report and the Audin's magnetic file.

Field	A2_TIPO
Type	Character
Length	1
Format	@!
Title	Type
Description	Type of Supplier
*Help*	Supplier Type: F = Physical J = Legal X = Other

Table SA1 – Customers File

Field	A1_VINCULO
Type	Character
Length	2
Format	@!
Valid	ExistCpo("CC1")
Title	L. Person
Description	Linked Person
*Help*	Indicate the type of commercial link between the participant and the issuer, if any. This information is used in the Transfer Price report and the Audin's magnetic file.

Field	A1_TIPO
Type	Character
Length	1
Format	@!
Title	Type
Description	Type of Customer
*Help*	Customer Type: Brazil options (L,F,R,S,X): L - Rural Area Producer; F - Final Consumer; R - Reseller; S - Joint ICMS without IPI at the base; X - Export. Other Countries: Check available options

03. USAGE PROCEDURE

In the Tax Records module, option Reports/Checklist/Transfer Pricing, configure the routine parameters as follows:

Initial Date?

Enter the initial date to generate information.

Final Date?

Enter the final date to generate information.

Select Branches?

Determine whether to display a screen after the wizard so that branches are selected for processing.

Note: If more than one branch is selected, the values will be consolidated.

Order?

Select the print order of the report: by product or by method.

Check the parameters and configure the report printing.

IMPORTANT

The products that have transactions in both inflow and outflow will be printed in the report. In the case of the PRL method 60%, only the outflows of the finished product produced will be considered, and the inflows of imported raw materials and inputs will be identified in the system by the Product Structure to calculate the percentage of participation in the total cost.

Information will be presented product by product regarding the inflows, the outflows, and the calculation of the parameter price by means of the PRL method - Resale Price Less Profit.

At the end of the report, a total adjustment of all products is presented.

Calculation Examples

Hypothesis: Import of goods applied to production (margin of 40%)

a) Calculation of the Net Sales

Average Sales Price	BRL 30,000.00
Unconditional Discounts Granted	BRL 0.00
Taxes Incident on Sales	BRL 6,000.00
Net Price	BRL 24,000.00

b) Calculation of the Participation Percentage

Total cost calculated according to the cost sheet	BRL 10,000.00	100%
Cost of Imported Input	BRL 1,000.00	10%
Other aggregate costs calculated according to cost sheet	BRL 9,000.00	90%

c) Application of the Participation Percentage (item "b") on net revenue (item "a")

Participation (10% x BRL 24,000.00)

BRL 2,400.00

d) Calculation of profit margin

Margin (40% x BRL 2,400.00)

BRL 960.00

e) Calculation of the Parameter Price

Net Revenue - Proportional	BRL 2,400.00
(-) Profit Margin	BRL 960.00
(=) Parameter	BRL 1,440.00
Calculation of the Taxable Value
Price practiced	BRL 1,000.00
( - ) Parameter price	BRL 1,440.00
(=) Adjustment Value	BRL 440.00

f) Verification of the variance margin

Price practiced	BRL 1,000.00
(X) Percentage of variance admitted	5%
Value of Admitted Variance	BRL 50.00

As in the example, the value of the adjustment (BRL 440.00) is higher than the variance margin admitted (BRL 50.00), so it will be necessary to proceed to the addition of the respective value to the net profit for the purpose of calculating the actual profit and the CSL calculation base.

Hypothesis: Resale of goods (20% margin)

a) Calculation of the Net Sales Price

Average Sales Price	BRL 30,000.00
Unconditional Discounts Granted	BRL 0.00
Taxes Incident on Sales	BRL 6,000.00
Net Price	BRL 24,000.00

b) calculation of profit margin

Margin (20% x BRL 24,000.00)

BRL 4,800.00

c) Calculation of the Price-Parameter

Net revenue	BRL 30,000.00
( - ) Profit Margin	BRL 4,800.00
(=) Parameter	BRL 25,200.00
Calculation of the Taxable Value
Price practiced	BRL 23,000.00
( - ) Parameter price	BRL 25,200.00
(=) Adjustment Value	BRL 1,200.00

d) Verification of the variance margin

Price practiced	BRL 23,000.00
(X) Percentage of variance admitted	5%
Value of Admitted Variance	BRL 1,150.00

As in the example, the value of the adjustment (BRL 200.00) is higher than the variance margin admitted (BRL 1250.00), so it will be necessary to proceed to the addition of the respective value to the net profit for the purpose of calculating the actual profit and the CSL calculation base.

04. TABLES

SA1 – Customers File
SA2 – Suppliers File
SB1 – Products File
SD1 – Incoming Invoice Items
SD2 – Outgoing Invoice Items
SF1 – Incoming Invoice Header
SF2 – Outgoing Invoice Header
SM0 – Branches File

05. ADDITIONAL INFORMATION

Where to find	http://www.receita.fazenda.gov.br/
Legislation involved	Normative Instruction RFB No. 1,870, dated January 30, 2019.
Opinion from TOTVS Industry Consulting	Industry Consulting - PISCS - Transfer Pricing Import Cost PRL

Páginas filhas