PERU Law and Practice Contributed by: Tania Quispe, Martín Ramos, Raquel Cabrera and Ramzi Benzaquen, +Value
• transactions carried out with subjects whose income/gains from such transactions are subject to a preferential tax regime. Consequently, it is necessary to have the rele - vant information, documentation and/or analysis that supports that, for tax purposes, the value assigned to goods, services and other benefits reflects the market value, in accordance with the arm’s length principle. Under Article 32-A of the ITL, two or more indi - viduals, companies or entities are considered related parties when one of them participates directly or indirectly in the administration, control or capital of the other; or when the same person or group of persons participate/s directly or indi - rectly in the management, control or capital of several individuals, companies or entities. Relat - ed-party status also applies when a transaction involves intermediary parties aimed at conceal - ing a transaction between related parties. Additionally, Article 24 of the ITL regulates the assumptions and criteria for establishing relat - ed-party relationships. For example, here are some situations in which two or more individu - als, companies or entities are considered related parties. • When a natural or legal person owns more than 30% of the capital of another legal entity, directly or through a third party. • When more than 30% of the capital of two or more legal entities belongs to the same natural or legal person, directly or through a third party. • When more than 30% of the capital of two or more legal entities belongs to common partners of them. • When there is a business collaboration con - tract with independent accounting, in which
case the contract will be considered linked to those contracting parties that participate, directly or through a third party, in more than 30% of the contract assets. • When there is a joint venture contract, in which one of the partners, directly or indi - rectly, participates in more than 30% in the results or profits of one or more businesses of the partner, in which case it will be consid - ered that there is a link between the partner and each of their associates. • When there is the existence of permanent establishments, applicable to non-resident companies with establishments in the country or resident companies with establishments abroad. • When the exercise of dominant influence over management decisions, indicating control over other entities’ management bodies. • When there is a significant proportion of transactions between the parties – this is the case when 80% or more of a party’s transac - tions involve related parties, constituting at least 30% of the counterparty’s transactions. 3. Methods and Method Selection and Application 3.1 Transfer Pricing Methods The ITL establishes that transaction prices agreed upon in transactions – subject to transfer pricing rules – will be determined in accordance with any of the following accepted internation - al methods, considering the most appropriate method to reflect the economic reality of the operation: • comparable uncontrolled price method (CUPM);
• resale price method (RPM); • cost plus method (CPM);
295 CHAMBERS.COM
Powered by FlippingBook