PERU Law and Practice Contributed by: Tania Quispe, Martín Ramos, Raquel Cabrera and Ramzi Benzaquen, +Value
expenses derived from operations with related parties for services. Subsection i) of Article 32-A of the ITL, as well as Article 118-A of the ITLR, indicate that the services provided to the tax - payer by its related parties must meet the benefit test and provide the requested documentation and information, in order to be able to deduct said costs and expenses for the determination of the tax. The documentation and information provided must demonstrate: • the effective provision of the service; • the nature of the service; • the real need for the service; • the costs and expenses incurred by the ser - vice provider; and • the reasonable criteria for assigning the costs and expenses. 11.4 Financial Transactions Peru’s transfer pricing rules on financial transac - tions are designed to ensure that these transac - tions reflect arm’s length pricing and are gener - ally aligned with the OECD’s Chapter X, which provides guidance on intercompany financial arrangements. However, while Peru adheres to the principles outlined in Chapter X, there are no specific and detailed standalone rules governing financial transactions such as loans, guarantees or other financing arrangements between related parties. 12. Co-Ordination With Customs Valuation 12.1 Co-Ordination Requirements Between Transfer Pricing and Customs Valuation While the CUPM includes rules applicable to the export or import of certain goods with recog - nised market quotations internationally, locally
or in the destination market, or those that deter- mine their prices based on market quotations and may be associated with customs regula - tions, as of now, there is no Peruvian legisla - tion or official guidance that connects transfer pricing with customs valuation. Therefore, the market value determined through transfer pric - ing methods is independent from the customs value, and vice versa. 13. Controversy Process 13.1 Options and Requirements in Transfer Pricing Controversies Transfer pricing audits in Peru are conducted by SUNAT through a tax audit procedure. After this procedure is completed, if a taxpayer disa - grees with the outcome, they have the right to file a claim with SUNAT against the results of the audit. If the taxpayer remains dissatisfied with the resolution of their claim, they may escalate the matter by filing an appeal with the Tax Court. The Tax Court then issues a decision to resolve the dispute, marking the end of the contentious tax procedure. Should either party disagree with the Tax Court’s decision, they can initiate an administrative liti - gation process by filing a lawsuit against the decision. This process may include an appeal and potentially culminate in a cassation appeal to the Supreme Court, assuming the case meets the criteria for admissibility. This highlights that disputes over transfer pricing rules can involve multiple stages of legal chal - lenge. It is also important to note that the pay - ment of the disputed tax debt is not required dur - ing the contentious tax procedure if the appeals are submitted within the prescribed timeframe. If the appeals are not submitted within the pre -
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