Tuesday, 21 February 2017

Peru: Changes implemented to income tax law related to transfer pricing

On December 31, 2016, the Peruvian Government issued a legislative decree modifying the Peruvian Income Tax Law (PITL) related to transfer pricing. The proposed changes that took effect January 1, 2017 include the following topics:

  • Market value of commodities through the Comparable Uncontrolled Price (CUP) method. 
  • The adoption of new formal obligations following the recommendations provided under Action 13 of the OECD’s Base Erosion and Profit Shifting (BEPS) Plan, including Local File Informative Return, Master File Informative Return, and country-by-country (CbC) report Informative Return. 
  • The introduction of the benefit test for intragroup services.

The annual filing of the Local File Informative Return will be required from 2017, while the annual presentation of the Master File and the CbC Informative Returns will be required from 2018.

Source & more info: PwC