The withholding tax is made in the event of payment to the legal person established abroad under cost-sharing agreements. Unfortunately, since it understood that centralizing costs would not bring common benefits over cost-to-cost, irs described the contract analyzed as a service delivery. Therefore, the helmsman stated that they would focus on irrf, CIDE and PIS/COFINS-Import on the sums paid abroad. I hope that it is up to taxpayers to reverse this absurd conception of the body that should guide them in the correct interpretation and application of tax legislation. The consultation solution reinforces the orientation of consultation solution No 8/12 and divergence solution No 8/12. 23/13, to the extent that cost-sharing contracts, in order to qualify, depend on the adequacy of certain aspects or requirements, including (i) the instrumentation of activities with proportionate costs (i.e. intermediate activities); (ii) the contributory nature; (iii) provide for objective and appropriate allocation criteria and (iii) the absence of a profit margin. As regards the need for mutual benefits, Consultation Solution No 276/2019 even mentioned the 2017 OECD Transfer Pricing Guidelines, as it was concluded that the matrix was carrying out activities with no expected benefit. On the other hand, the consultation solution No 276/2019, perhaps the most different from the others, the emphasis placed by the Irishman on the need to measure the individual benefit by indirect methods on the basis of objective criteria, given that the direct identification of costs would be characteristic of service contracts.
In this case, the direct determination of costs, which was criticized by the consulting solution, was carried out taking into account the number of employees assigned to carry out the activities. For those two reasons, consultation solution No 276/2019 was refused fiscal neutrality on the ground that it was a contract for the provision of technical services. It therefore considered that the IRRF, Cide-Royalties, PIS/COFINS-Importação were linked.