Transfer pricing in Venezuela at a glance
|Regulation Type||National regulations with reference to the OECD|
|Are there specific transfer pricing regulations?||Yes|
|Submission deadline upon request||Directly|
|Annual update required||No|
|Official language requirements||Spanish|
|Potential impact of penalties||N/A|
Venezuelan tax law
Rules for transfer pricing in Venezuela are based upon:
- Income Tax Law Nr. 38.628 Chapter III Title VII
- National Integrated Tax and Customs Service Administration Providence NR sNAT-2003-2424
The OECD Transfer Pricing Guidelines are applicable to Venezuelan tax law as far as a transfer pricing topic is not covered by Venezuelan tax law.
Accepted methods are:
- the comparable uncontrolled price (CUP) 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 Venezuela prescribe that the best method should be used. However, when the CUP method can be used, this method should be used.
Information that should be included in the documentation:
The transfer pricing laws in Venezuela prescribe that the documentation should include details on the functions, assets, risks, organizational structure, business descriptions, detailed information of all operations with related parties and non-related parties, audited financial statements, agreements and contracts, reasoned method selection, inventory valuation method (if applicable), analysis results and other relevant information.
Rules for transfer pricing in Venezuela prescribe that all documentation should be submitted in Spanish.
Requirements to prepare documentation annually
In Venezuela it is obliged to prepare the documentation contemporaneously. However, officially it is not necessary to update the documentation annually.
Submission deadline upon request by tax authorities
Upon request of the tax authorities, a taxpayer should submit its documentation directly.
Advance Pricing Agreements
In Venezuela it is possible to obtain unilateral and bilateral Advance Pricing Agreements (APA)
Transfer pricing rules in Venezuela do not provide any information regarding the term for which an APA can be agreed upon.
Rules for transfer pricing do not provide for specific transfer pricing penalties. This means that ordinary penalties apply.