PERU Law and Practice Contributed by: Tania Quispe, Raquel Cabrera, Ramzi Benzaquen and Jadhira Unda, +Value
7.7 Duration of APA Cover The ITLR stipulate that APAs shall be applicable to the taxable year in which they are approved and for the
The defence strategy in this context is designed to establish that the taxpayer is not required to present said reports. Moreover, the infraction delineated in numeral 4 of Article 176 concerns the submission of reports either incompletely or inaccurately reflecting the truth. The defence strategy here aims to prove that the reports submitted comply fully with all prescribed guidelines and accurately depict the taxpayer’s opera - tional realities. Infractions Related to the Fulfilment of Tax Obligations For example, the infraction specified in numeral 1 of Article 178 of the Tax Code relates to the declaration of false figures or data. The defence strategy in this scenario is aimed at clarifying that the reports have no bearing on the determination and payment of the taxpayer’s tax liabilities. In Peru, there is a Gradu - ated Penalty Relief System, through which taxpay - ers can obtain reductions for the tax infractions they have committed. For this purpose, each penalty and/ or infraction is associated with a procedure through which taxpayers can rectify them. It is important to note that, depending on the timing of such rectifica - tion, different levels of reduction apply. For instance, in the case of the infraction outlined in numeral 4 of Arti - cle 176 of the Tax Code, taxpayers will be eligible for a 100% reduction of the penalty if they resubmit the reports (including any previously omitted information) before receiving any notification from SUNAT regard - ing the said infraction. 8.2 Transfer Pricing Documentation Peru has adopted transfer pricing documentation rules: SUNAT requires taxpayers to prepare all the files and reports contemplated in the OECD Guide - lines. This obligation became effective on 1 January 2017, with the enforcement of the Legislative Decree No 1312 (for more details, see 1.2 Current Regime and Recent Changes). Regarding the formal requirements to be submitted by those taxpayers subject to transfer pricing rules, these were implemented in accordance with Action 13 of the BEPS project. The Peruvian legal framework establishes different thresholds for reporting require - ments based on the documentation to be submitted. These thresholds take as reference the tax units that
next three taxable years thereafter. 7.8 Retroactive Effect for APAs
As of 2025, APAs may have effects on transactions from prior taxable years. For this to apply, it must be verified that the relevant facts and circumstances of those prior years are the same as those in the years covered by the APAs; and that the statute of limita - tions has not expired for the Tax Authority to deter - mine the CIT liability arising from the application of transfer pricing rules with respect to such transac - tions. Such retroactive provision shall not apply when a tax assessment resolution has already been notified as a consequence of the application of transfer pric - ing rules. 8. Penalties and Documentation 8.1 Transfer Pricing Penalties and Defences There are various specific penalties and fines for infractions related to transfer pricing, against which taxpayers may file appeals (if they disagree), within the established deadlines. Such infractions can be divided into the following three categories. Infractions Related to the Obligation of Permitting Oversight by the Tax Authority, Reporting to, and Appearing Before It For example, the infraction specified under numeral 27 of Article 177 of the Tax Code concerns not submit - ting the documentation and information that supports the local file, master file, and/or CbCR as demanded in the specified manner, within the designated time - frame, and according to the required conditions. The defence strategy in this scenario is focused on proving that the taxpayer has complied with the tax author - ity’s documentation requests in accordance with the regulatory stipulations. Infractions Related to the Obligation of Filing Declarations and Communications For example, the infraction identified in numeral 2 of Article 176 of the Tax Code pertains to the failure to submit reports within the prescribed deadlines.
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