Legislative Decree N° 1312 (published 31 December 2016) introduces changes to the Peruvian transfer pricing rules and reflects the intention of Peru to implement the recommendations from Actions 10 and 13 of the OECD’s base erosion and profit shifting (BEPS) project.
There are new rules for transfer pricing information returns, pursuant to BEPS Action 13. Specifically, there are the following three transfer pricing reporting requirements:
With the new measures, it is now necessary for taxpayers to comply with a benefit test and to provide specific information as set forth in the new law before a taxpayer / company can deduct intragroup service charges for tax purposes. The arm´s length value of intragroup services must be determined based on a cost plus mark-up basis. In the case of “low value” added services, the mark-up cannot exceed 5%.
Commodity exports and imports transactions with related parties or with entities located in “tax haven” jurisdictions must be priced, for tax purposes, based on the international quote of the commodity as of the shipment date (exports) or the landing date (imports).
For more information, contact a tax professional with KPMG’s Global Transfer Pricing Services group in Peru:
Juan Carlos Vidal | +51 (1) 611 3000 | firstname.lastname@example.org
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