PERU Law and Practice Contributed by: Tania Quispe, Martín Ramos, Raquel Cabrera and Ramzi Benzaquen, +Value
This Return must contain, among others, infor - mation regarding how the income, taxes paid and business activities of each entity belonging to the multinational group are distributed on a global level. 9. Alignment With OECD Transfer Pricing Guidelines 9.1 Alignment and Differences The legal provisions, complementary rules and regulations established by SUNAT are closely aligned with the provisions of the OECD Guide - lines, which are an interpretative source in Peru. However, there are some differences in the local application related to valuation 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; there - fore, the Guidelines develop five methods and the ITL develops six methods. It is essential to highlight that, in the absence of specific regulations for these scenarios, the ITL introduces the flexibility to adopt alternative valuation methods not outlined in the OECD Guidelines. This provision applies when assess - ing controlled transactions that are challenging to value due to their unique facts and circum - stances, which hinder direct comparison with market benchmarks. Such transactions might include, for example, the buying and selling of fixed assets or the sale or transfer of intangible assets. This approach ensures a more nuanced and effective valuation process for complex transactions.
In terms of formal obligations, the main differ - ences with respect to the OECD Guidelines are the following. • Local File Informative Return – the taxpayer must present a functional and economic anal - ysis of the operations that exceed a mate - riality amount (2.5 tax units). Likewise, they report on the amounts and dates effectively collected and/or paid of the intercompany operations. They must include a Benefit Test analysis for the service operations received. • Master File Informative Return – this must include a chart illustrating the legal structure, legal corporate structure of each subsidiary, as well as a detailed table of such structure, ie, including name or corporate name, tax identification number, country or jurisdic - tion and percentage of shareholders capital participation. • CbCR Informative Return – there are no dif - ferences related to the information required; however, SUNAT requests that the informa - tion follows a certain order, prior to its decla - ration. Therefore, the taxpayer responsible for ensuring that the declaration is in an XML file or it will not be accepted by the Administra - tion’s system. 9.2 Arm’s Length Principle The transfer pricing regime in Peru is aligned with the arm’s length principle established in the OECD TP Guidelines. 9.3 Impact of the Base Erosion and Profit Shifting (BEPS) Project In order to prevent and avoid tax avoidance between related companies, SUNAT has imple - mented in the legislation some actions of the BEPS Project on transfer pricing, as set out below.
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