OVERVIEW
Peru’s tax administration has established new transfer pricing requirements applicable to the import and export of commodities, highlighting the need to submit an informative sworn declaration on the same day of arrival or departure. The adjustments also impact Advance Pricing Agreements (APAs), introducing additional valuation methods.
What’s new?
- Informative return: The Tax Administration now requires companies that import or export commodities to related parties to submit an informative return on the transaction date. This ensures transparency in the valuation of transactions, with the international reference price applied in cases of non-compliance.
- New Methods in APAs: Additional valuation methods have been introduced for APAs, enabling precise valuations tailored to the type of commodity and aligned with international standards. These methods also require technical documentation to justify their application, adding a level of precision and compliance in transaction evaluations.
- Additional Documentation Requirements: Taxpayers using unconventional methods must prepare detailed technical reports justifying the chosen method, ensuring compliance with the new regulations and avoiding penalties.
Key actions
• Prepare the Informative Declaration in Advance: Taxpayers should ensure all necessary data and documentation are ready to submit the informative declaration on the transaction date, thus avoiding automatic adjustments and penalties.
• Document and Justify Alternative Methods: If applying a valuation method different from the comparable uncontrolled price method, taxpayers should prepare solid documentation supporting the choice of method. This includes a comprehensive analysis demonstrating its suitability and alignment with regulations.
• Update Existing APAs: Taxpayers with APAs should review and incorporate new valuation methods as appropriate, ensuring compliance with recent requirements and optimizing accuracy in transfer pricing agreements.
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