PERU Law and Practice Contributed by: Tania Quispe, Raquel Cabrera, Ramzi Benzaquen and Jadhira Unda, +Value
were formally developed through Supreme Decree No 302-2025-EF, published on 17 December 2025. 3.3 Hierarchy of Methods The IITL states that, in order to establish the most appropriate transfer pricing method, the following must be considered. • The method that is most compatible with the line of business, business or commercial structure of the company or entity. • The method that has the best quality and quantity of information available for its adequate application and justification. • The method that contemplates the most adequate degree of comparability between parties, transac - tions and functions. • The method that requires the lowest level of adjust - ments in order to eliminate the existing differences between the comparable facts and situations. It should be added that, for the purposes of apply - ing the most appropriate transfer pricing method, the concepts of costs of goods and services, production costs, gross profit, expenses and assets will be deter - mined based on the provisions of the International Accounting Standards, if they do not oppose the pro - visions of the ITL. Therefore, the Peruvian regulations have not established a hierarchy of methods. Notwithstanding the foregoing, the ITL indicates that in export or import operations of goods (listed in Annex 2 of the ITLR) with known quotations in the international market, local market or destination market, including those of derivative financial instruments, or with prices that are fixed taking as a reference the quotations of the indicated markets, the market value is determined on the basis of such quotation values. In these cases, the method to be used is the CUPM; however, the ITL adds that, if the taxpayer uses a different method for the analysis of the transactions, the corresponding supporting documentation must be submitted to the Tax Administration, as well as the economic, financial and technical reasons justifying its use. 3.4 Ranges and Statistical Measures The ITLR establish that, when determining the price, consideration amount or profit margin that would have
prevailed among independent parties in comparable transactions and resulting from the application of any of the previously mentioned methods, a range of pric - es, consideration amounts or profit margins should be obtained when there are two or more comparable transactions. It should be noted that if the value agreed upon by the related parties falls within this range, it will be consid - ered as agreed upon at market value. On the contrary, if the agreed value falls outside this range and, as a result, a lower income tax is determined in the country for the respective fiscal year, the market value will be the median of that range. The range will be calculated using the interquartile method. Lastly, in the application of the CUPM, if the transac - tions exhibit a high level of comparability, the range will establish the minimum value at the lowest of the prices or consideration amounts of the comparable operations and the maximum value at the highest of these. For this purpose, the prices or consideration amounts of the comparable transactions are con - sidered to have a high level of comparability if the coefficient of the variation applied to the values of the comparable transactions does not exceed 3%. In this regard, Peruvian regulations provide that the applicable arm’s length range is determined using the interquartile method; accordingly, the arm’s length range is composed of the values between the first and third quartiles of the set of comparables. If the result of the controlled transaction falls outside this interval and this leads to a lower payment of income tax, the median must be applied as the arm’s length value. Likewise, in CUP analyses with a high degree of comparability, the range may be established between the minimum and maximum values of the comparable transactions, provided that the coefficient of variation does not exceed 3%. Finally, it is important to note that, pursuant to the amendments introduced by Supreme Decree No 302 2025 EF, the rules in the Regulations concern - ing the determination of ranges and the application of the interquartile method (Articles 114 and 115) apply exclusively to the traditional transfer pricing methods. For “other methods”, new Article 113 B establishes
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