PERU Law and Practice Contributed by: Tania Quispe, Martín Ramos, Raquel Cabrera and Ramzi Benzaquen, +Value
multinational enterprises, focusing on compli - ance with transfer pricing regulations.
in the country, the ITLR have governed the fol - lowing important aspects: • the features of APAs; • the presentation and content of the proposal; • the period for evaluating the proposal; • the acceptance or rejection of the proposal; • the execution and duration of the APAs; • the modification and invalidation of the APAs; • the auditing authority; • the submission of an annual report; and • other relevant matters. 7.3 Co-Ordination Between the APA Process and Mutual Agreement Procedures With regard to the conclusion of APAs with tax authorities of countries with which Peru has entered into DTTs, the ITLR have indicated that this will be carried out within the framework of the amicable procedures 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 carried out when the taxpayer considers that the measures 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, regard - less 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. Advance Pricing Agreements (APAs) 7.1 Programmes Allowing for Rulings Regarding Transfer Pricing The ITL stipulates that the Peruvian tax admin - istration may enter into APAs with taxpayers domiciled in the country, whereby the valuation of various transactions falling within the scope of transfer pricing rules is determined based on the methods and criteria mentioned in section 3. Methods and Method Selection and Applica- tion . Furthermore, the ITL specifies that SUNAT may also conclude APAs with other tax adminis - trations of countries with which Peru has entered into an international agreement to avoid double taxation. It is worth reiterating that, currently, Peru has signed DTTs with Chile, Canada, Brazil, Mexico, South Korea, Switzerland, Portugal and Japan. Additionally, Peru is a party to Decision 578 of the Andean Community (CAN), establish - ing the Regime to prevent double taxation and prevent tax evasion among member countries: Bolivia, Colombia, Ecuador and Peru. However, to date, Peru has not yet signed any APAs. Peru allows the conclusion of unilateral APAs with resident taxpayers. However, to date, no programmes for bilateral or multilateral APAs have been established in the country. The scope of the APA programme in Peru is lim - ited to transfer pricing matters. To date, it does not cover other tax aspects. 7.2 Administration of Programmes APAs are administered by SUNAT. In relation to the conclusion of APAs with taxpayers domiciled
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