Transfer pricing in Peru at a glance
|Regulation Type||National regulation with reference to the OECD|
|Are there specific transfer pricing regulations?||Yes|
|Submission deadline||June of each year|
|Submission deadline upon request||N/A|
|Annual update required||Yes|
|Official language requirements||Spanish|
|Potential impact of penalties||0.6% of the net income|
Peruvian tax law
Rules for transfer pricing in Peru are based upon:
- Peruvian Income Tax Law Articles 32 and 32-A
The Peruvian Income Tax Law refers to the OECD Transfer Pricing Guidelines as an interpretation source for transfer pricing analysis. However, when the OECD Guidelines and the national regulations contradict, the national regulations prevail.
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
Priority of methods
Rules for transfer pricing in Peru prescribe that the best method should be used.
Information that should be included in the documentation:
Rules for transfer pricing in Peru prescribe that taxpayers should perform a technical study that:
- Supports their transfer pricing calculations
- Indicates the transfer pricing method applied
- Shows detailed documentation and information for each transaction it is involved in
Rules for transfer pricing in Peru prescribe that all documentation should be submitted in Spanish.
Requirements to prepare documentation annually
Transfer pricing documentation in Peru should be updated annually. This means that a new transfer pricing study needs to be submitted each year.
Submission deadline upon request by tax authorities
Rules for transfer pricing in Peru do no state how much time a taxpayer has to submit its documentation upon request of the tax authorities.
Advance Pricing Agreements
In Peru it is possible to obtain an Advance Pricing Agreement (APA).
An APA is agreed upon for a period of three years.
Non-compliance with the obligation to present a transfer pricing technical study, or documentation and information supporting the calculation of the prices agreed to in transactions with related parties, is penalized with a fine of 0.6 percent of the company’s net income the year preceding that which is under scrutiny.