Transfer Pricing
Country Summary
Peru

The document discusses transfer pricing regulations in Peru, emphasizing various aspects, including transfer pricing methods, transfer pricing documentation, tax havens, blacklists, advance pricing agreements (APAs), audit practices, and penalties.

Overview:

Transfer Pricing Methods

In Peru, six transfer pricing methods are accepted, including the Comparable Uncontrolled Price (CUP) method, resale price method, cost plus method, profit split method, residual profit split method, and transactional net margin method. These methods should reflect the economic reality of transactions.

Transfer Pricing Documentation

Transfer pricing documentation is a key requirement for businesses in Peru. It includes master files, local files, and country-by-country reports. Specific income thresholds determine the need for these documents. These regulations aim to ensure transparency and compliance with international standards.

Tax Havens & Blacklists

Peru’s tax authority maintains a blacklist of countries and jurisdictions considered tax havens or non-cooperative. Inclusively, a jurisdiction may be blacklisted if there is no information exchange agreement with Peru, lack of transparency, or a corporate income tax rate below 17.7%. To be excluded, a jurisdiction must meet specific criteria such as OECD membership or effective information exchange.

Advance Pricing Agreements (APAs)

Peruvian taxpayers can request Advance Pricing Agreements (APAs) for cross-border transactions. The process involves submitting proposed transfer pricing methods, supporting data, and financial details. The tax authority has 12 months to review the request, with APAs applying for the approved fiscal year and three subsequent years.

Audit Practices

The Superintendencia Nacional de Administraci√≥n Tributaria (SUNAT) oversees tax audits in Peru. While the burden of proof lies with taxpayers, SUNAT’s challenges require taxpayer support for court trials. Legislative changes have extended the timeframe for SUNAT to examine APA proposals and introduced penalties for non-compliance.

Record Keeping and Penalties

Records must be kept for four years, extending to six years if no income tax declaration was filed. Penalties include fines for late or incomplete informative affidavits and non-compliance with documentation requirements.

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