PERU Law and Practice Contributed by: Tania Quispe, Raquel Cabrera, Ramzi Benzaquen and Jadhira Unda, +Value
7.3 Co-Ordination Between the APA Process and Mutual Agreement Procedures With regard to the conclusion of APAs with tax author - ities of countries with which Peru has entered into DTTs, the ITLR have indicated that this will be car - ried out within the framework of the amicable proce - dures provided for therein. Furthermore, it is worth noting that SUNAT has published a Guide to the Mutual Agreement Procedure (MAP) established in agreements to avoid double taxation and prevent tax evasion and avoidance in relation to income tax and assets. In this regard, the MAP is a procedure that is car - ried out when the taxpayer considers that the meas - ures taken by one or both contracting states imply, or may imply, taxation that is not in accordance with the provisions of the DTT or encounter difficulties and doubts arising from the interpretation or application of a DTT, regardless of the remedies provided for in the domestic law of those contracting states. Transfer pricing adjustments are among the matters that may be submitted to an MAP. 7.4 Limits on Taxpayers/Transactions Eligible for an APA With respect to the execution of APAs with taxpayers domiciled in the country, the ITLR have outlined that these are civil law agreements entered into between SUNAT and taxpayers domiciled in Peru engaging in transactions with related parties. These agreements cover transactions conducted to, from, or with entities located in non-co-operative or low- or no-tax jurisdic - tions, or transactions involving entities subject to a preferential tax regime. However, the Regulations also specify that the pro - posal will not be approved if it is demonstrated that the taxpayer or any related parties involved in the transactions to be covered by the APA, or their repre - sentatives acting as such (in the case of legal entities), have an outstanding conviction for tax or customs offences. Additionally, while there are no established limits regarding the transactions, the Regulations have provided guidelines for the approval or rejection of the proposal to enter into APAs. Furthermore, it has been stipulated that these agreements will apply to the ongoing taxable year at the time of approval and
for the subsequent three taxable years. Regarding the conclusion of APAs with tax administrations, the ITL has restricted them to countries with which Peru has entered into international agreements to avoid double taxation. Effective from 2025, the application of roll-back is permitted. 7.5 APA Application Deadlines The ITL specifies that SUNAT may enter into APAs with taxpayers domiciled in Peru to establish the valuation of transactions within the scope of transfer pricing rules, utilising the established methods and criteria. Pursuant to Superintendence Resolution No 377-2013/SUNAT, SUNAT has outlined various provi - sions for the execution of APAs between domiciled taxpayers and SUNAT. These provisions detail the for - mat, deadlines and conditions for holding preliminary meetings, submitting the supporting information and documentation for the APA proposal, including any modifications to the proposal, the procedures and requirements for formalising APAs, and the submis - sion of the annual report. The Resolution mandates that a taxpayer interested in initiating an APA and engaging in preliminary meet - ings with SUNAT must declare their intention before submitting their proposal. If a taxpayer deems the meetings unnecessary, they may submit their propos - al along with the required information and/or docu - mentation directly. Additionally, the Resolution speci - fies the minimum information that the declaration of intent must contain. Taxpayers are required to submit their proposal within 90 business days following the last meeting. If this period elapses and the taxpayer remains interested in proceeding with an APA with SUNAT, they must reaffirm their intention and either schedule new preliminary meetings or submit the pro - posal directly. Lastly, SUNAT has a 24-month period from the date of the proposal’s submission to approve or reject it, which can be extended by an additional 12 months. 7.6 APA User Fees Peruvian legislation has not established fees for tax - payers to enter into APAs with SUNAT.
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