PERU Law and Practice Contributed by: Tania Quispe, Martín Ramos, Raquel Cabrera and Ramzi Benzaquen, +Value
7.4 Limits on Taxpayers/Transactions Eligible for an APA With respect to the execution of APAs with tax - payers 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 trans - actions conducted to, from, or with entities located in non-co-operative or low- or no-tax jurisdictions, or transactions involving entities subject to a preferential tax regime. However, the Regulations also specify that the proposal will not be approved if it is demon - strated that the taxpayer or any related parties involved in the transactions to be covered by the APA, or their representatives acting as such (in the case of legal entities), have an outstanding conviction for tax or customs offences. Addition - ally, while there are no established limits regard - ing the transactions, the Regulations have pro - vided 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 taxa - tion. The roll-back of an APA is prohibited if SUNAT has already made and communicated a deter - mination regarding the value of the transactions in question as a result of applying the transfer pricing rules. 7.5 APA Application Deadlines The ITL specifies that SUNAT may enter into APAs with taxpayers domiciled in Peru to estab -
lish the valuation of transactions within the scope of transfer pricing rules, utilising the established methods and criteria. Pursuant to Superintend - ence Resolution No 377-2013/SUNAT, SUNAT has outlined various provisions for the execu - tion of APAs between domiciled taxpayers and SUNAT. These provisions detail the format, deadlines and conditions for holding preliminary meetings, submitting the supporting information and documentation for the APA proposal, includ - ing any modifications to the proposal, the pro - cedures and requirements for formalising APAs, and the submission of the annual report. The Resolution mandates that a taxpayer inter - ested in initiating an APA and engaging in pre - liminary meetings with SUNAT must declare their intention before submitting their proposal. If a taxpayer deems the meetings unnecessary, they may submit their proposal along with the required information and/or documentation directly. Additionally, the Resolution specifies 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 proceed - ing with an APA with SUNAT, they must reaffirm their intention and either schedule new prelimi - nary meetings or submit the proposal 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 taxpayers to enter into APAs with SUNAT.
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