Global

Details

  • Service: Tax, Global Transfer Pricing Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/9/2012

Peru - Modifications to transfer pricing regulations 

July 9:  Legislative decree N° 1112 (2 July 2012) makes modifications to Peru’s transfer pricing regulations.

The changes provided in the decree include the following:


  • Scope of application: Previously, in order for the transfer pricing rules to apply (i.e., a transfer pricing study supporting an annual transfer pricing affidavit), the transaction had to result in a loss of tax revenue to Peru. The new decree eliminates the requirement for a loss in tax revenue. Instead, for the transfer pricing rules to apply in Peru, it is sufficient for there to be a transaction between related parties or involving an entity in a tax haven jurisdiction.
  • Transfer pricing adjustments: Previously, a transfer pricing adjustment could be made when the value of transactions was not at market value (arm’s length) regardless of whether the adjustment resulted in an increase or decrease in tax. Under the new provisions, an adjustment can only be made when a lower tax has been determined (cuando se determine un menor impuesto en el país).
  • Presumptive income: The new standard triggers application of the transfer pricing rules in certain income-generating transactions concerning real-estate leasing, or transfers of property at less than market value. Previously, with respect to presumptive income (rentas presuntas), the transfer pricing rules applied with respect to related-party transactions.
  • Other changes: The new procedures authorize Peru’s tax administration (Superintendencia Nacional de Administración Tributaria—SUNAT) to establish advanced pricing agreements (APAs) with tax administrations in countries with which Peru has in effect an income tax treaty. Also, the decree addresses formal transfer pricing documentation and technical study requirements. The SUNAT is authorized to enforce transfer pricing documentation / studies (effective 3 July 2012).

The modifications are generally effective 1 January 2013.


Read a July 2012 report (Spanish) [PDF 28.7KB] prepared by the KPMG member firm in Peru: Modifican regulación de Precios de Transferencia mediante Decreto Legislativo No. 1112



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