PERU Law and Practice Contributed by: Tania Quispe, Raquel Cabrera, Ramzi Benzaquen and Jadhira Unda, +Value
correspond to the value in soles established by the Peruvian state for the determination of taxes, infrac - tions, penalties and fines and other tax aspects. In the case of the Local File Informative Return, this requirement corresponds to taxpayers whose income in the fiscal year is greater than 2,300 tax units. This Return should detail transactions that generate tax - able income as well as those considered as part of the deductible cost or expense in the income tax (IR) calculation. The Master Report Informative Return is required to be submitted by taxpayers who are part of an economic group with accrued income in the fiscal year exceed - ing 20,000 tax units and controlled transactions over tax units. This Report should contain, among other elements: • the transfer pricing policies related to intangibles; • information on the group’s financing methods; • its financial and fiscal position; • the organisational structure of the group; and • a description of the business operations involving the group and its members. Lastly, regarding the CbCR Informative Return, pro - vided that the revenue accrued by a taxpayer’s mul - tinational group is equal to or greater than PEN2.7 billion in the fiscal year before the reporting fiscal year, the following entities are legally required to submit the Return: • the parent entity of the multinational group if it is based in Peru; • the taxpayer that is a member of the multinational group when: (a) it has been appointed by the group as the sur - rogate parent entity; (b) the ultimate parent entity of the group is not required to file the CbCR in its country of resi - dence; (c) the CbCR is submitted to the country of resi - dence of the ultimate parent entity, but Peru has not established procedures for the auto - matic exchange of CbCR with that jurisdiction; and
(d) the ultimate parent entity has submitted the CbCR, and even though Peru has an informa - tion exchange mechanism with that jurisdic - tion, there has been a systematic failure to exchange information, according to SUNAT. This Return must contain, among others, information regarding how the income, taxes paid and business activities of each entity belonging to the multinational group are distributed on a global level. Transfer pricing documentation is filed through inform - ative returns submitted to SUNAT, in accordance with filing deadlines established each year under the offi - cial compliance schedule, with due dates determined based on the taxpayer’s RUC number and following the close of the relevant fiscal year. 9. Alignment With OECD Guidelines 9.1 Alignment and Differences The legal provisions, complementary rules and regula - tions established by SUNAT are closely aligned with the provisions of the OECD Guidelines, which are an interpretative source in Peru. However, there are some differences in the local application related to valua - tion methods and formal transfer pricing obligations, which are as follows. In the case of valuation methods, the Guidelines consider the RPSM as part of the PSM while the ITL considers them as different methods; therefore, the Guidelines develop five methods and the ITL develops six methods. It is important to note that the ITL allows the use of alternative or “other” valuation methods when the nature and characteristics of controlled transactions make the application of traditional transfer pricing methods inappropriate. These approaches are par - ticularly relevant for transactions that are difficult to value due to their unique facts and circumstances, which may hinder direct comparison with market benchmarks, such as the transfer of fixed assets or intangible assets. This flexibility supports a more appropriate valuation of complex transactions.
195 CHAMBERS.COM
Powered by FlippingBook