Wednesday, 1 April 2015

Bolivia: What the new transfer pricing regulations imply for affected taxpayers

On July 21, 2014, the Bolivian government enacted Law 549 that modifies article 45 of Law 843, introducing the transfer pricing regime applicable to commercial and/or financial transactions carried out between related companies for Corporate Income Tax (CIT) purposes.  The law is effective as from the first day following the end of the CIT fiscal year in accordance with the economic activity of the taxpayer.  Mining companies, with fiscal years ending on September 30, 2015, will be the first taxpayers required to comply with the new transfer pricing regulations.

On December 31, 2014, the Bolivian government enacted Law 549 through the Supreme Decree 2227 (SD 2227), which establishes the concept of a related party (“relationship”), along with a requirement to submit a transfer pricing study.

Source & more info: PwC