Transfer pricing in Guatemala

Transfer pricing in Guatemala at a glance

Regulation Type National regulations
Are there specific transfer pricing regulations? Yes
Submission deadline Contemporaneously
Submission deadline upon request 20 days
Annual update required Yes
Official language requirements Spanish
Potential impact of penalties N/A

 

Guatemalan tax law

Rules for transfer pricing in Guatemala are based upon:

  • Government agreement 213-2013 Chapter III
  • Superintendence of Tax Administration Decree 10-2012, Book I
  • Income Tax Chapter VI

OECD

Rules for transfer pricing in Guatemala are not based on the OECD Transfer Pricing Guidelines and Guatemalan transfer pricing regulations do not seem to be based on the OECD Guidelines.

Methods

Accepted methods

Accepted methods are:

  • The comparable uncontrolled price method
  • The resale price method
  • The cost plus method
  • The profit split method
  • The transactional net margin method
  • Valuation method for imports and exports of goods

Priority of methods

Rules for transfer pricing in Guatemala do not prescribe a priority of methods as such. However, the traditional methods are preferred over the transactional methods. Furthermore, if commodities are involved, a taxpayer is obliged to apply the valuation method for the import- and exportportation of goods.

Documentation requirements

Information that should be included in the documentation:

  • General information regarding the corporate group’s legal and organizational structure
  • Description of the intercompany transactions performed by the companies of the corporate group
  • Description of the functions performed and risks assumed by the companies of the corporate group
  • Information regarding the intangible assets of the corporate group
  • Description of the transfer pricing policy of the corporate group
  • Intercompany service agreements subscribed by the companies of the corporate group
  • Advance Pricing Agreements (APA) subscribed by the companies of the corporate group
  • Annual report of the corporate group

Language

Rules for transfer pricing in Guatemala prescribe that all documentation should be submitted in Spanish.

Requirements to prepare documentation annually

Documentation should be prepared annually en should be available at the annual income tax return date.

Submission deadline upon request by tax authorities

Upon request of the tax authorities, a taxpayer has 20 days to submit its documentation.

Advance Pricing Agreements

General

In Guatemala it is possible to obtain an APA.

Terms 

APA’s in Guatemala are agreed upon for a period of four years.

Penalties

Rules for transfer pricing in Guatemala do not provide for specific transfer pricing penalties meaning that ordinary tax penalties apply.

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