Tax reform enacted in Peru in December 2016 includes, among other items, an increase to corporate taxation.
The tax reform measures—including changes to the corporate tax law, to the provisions regarding the exchange of information, and concerning transfer pricing measures—are effective beginning 1 January 2017.
Among the changes in the tax reform package are provisions that:
The tax legislation also introduces formal transfer pricing requirements that generally are based on on OECD standards. These include documentation rules relating to:
The information and reports may be shared with foreign tax authorities under the exchange of information provisions.
Commodity exports and imports: The legislation includes new criteria for establishing the market value of assets and commodities. Commodity export and import 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), as follows.
Intragroup services: Market value is based on costs and expenses, plus a profit margin not in excess of 5% for value-added services.
A “benefit test” has been introduced to measure the value of added services. Under the test, the service provider is treated as adding economic value to the user of the service by improving or maintaining the user’s commercial position in the same manner as a third-party provider (or the user, in instances of self-development or self-creation) would have added such value through its services.
There are measures addressing bank secrecy in Peru. Under the new law, requests made to a court by the tax administration, seeking to “lift” bank secrecy must be resolved within 48 hours, and the requested information must be provided to the tax administration within the 10 business days following the notification of the letter that grants such disclosure requests.
For more information, contact a tax professional with KPMG’s Latin America Markets practice, Andean regional tax, or with the KPMG member firm in Peru:
Alfonso A-Pallete | +1 (305) 913 2789 | firstname.lastname@example.org
Eric Thompson | +57 (1) 618 8122 | email@example.com
Juan Carlos Vidal | +51(1) 611 3000 | firstname.lastname@example.org
Khaled Luyo | +51(1) 611 3000 | email@example.com
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