The crucial season of Transfer Pricing in the region

Throughout the month of June, most of the countries of our region will be immersed in the presentation of the transfer prices in the different forms, all of them presented to the respective Tax Administrations.

“I believe that each year the challenges are greater for companies, given the demands that the tax authorities in each country place with the audits and the very high ranges of fines that they apply for non-submission of transfer pricing studies or for errors. that are committed in the preparation of said studies and even due to errors in filling out the informative declarations, in that sense the entire region is measured by the same yardstick, affirms the auditor and accountant Carlos Vargas Alencastre CEO and Founder of TPC Group.

“Peru is the first country in South America that must submit to SUNAT the Virtual Form 3560-Local Report 2021 between June 15 and 23, 2022, a sworn statement that, as every year, accompanies the transfer pricing study attached in PDF to the Virtual Form, take into account that the penalty for non-submission is 0.6% of the total income of the undeclared period, in this case 2021″, comments Carlos Vargas.

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Not complying with the presentation of the Transfer Pricing Study means that the company, in addition to being awarded a high fine, must also proceed with the study and would probably enter the radar of SUNAT for a possible audit.

Which Peruvian companies are required to submit the Transfer Pricing Study in Peru – Virtual Form 3560 – Local Report? Those that have had accrued income for the year 2021 greater than 2,300 UIT (S/ 10,120,000) and that, in addition, the sum of their transactions between Related Parties has exceeded 400 UIT (S/ 1,760,000), this being the filing schedule in Peru:

If the last digit of the RUC ends in 0, they must do so on 06/15 of this year; if it is “1″ it would be 06/16; if it ends in “2″ and “3″ it is the day 06/17; if it is “4″ and “5″ it would be 06/20; “6″ and “7″ is 06/21; “8″ and “9″ on 06/22; while 06/23 will be given as the last deadline for all companies to do so without distinction of digits.

It is very important to be in the hands of a highly specialized consulting firm like TPC Group. “In our case, we have an ISO 9001:2005 certification in quality management in international transfer pricing services and we have been nominated in 2021 as the firm with the best transfer pricing practice in Latin America, according to the prestigious global tax entity International Tax Review”, highlights the expert.

“Peru is the first country in South America that must submit to SUNAT the Virtual Form 3560-Local Report 2021 between June 15 and 23, 2022, a sworn statement that, as every year, accompanies the transfer pricing study attached in PDF to the Virtual Form, take into account that the fine for non-submission is 0.6% of the total income of the undeclared period, in this case 2021”, comments Carlos Vargas.

INTERNATIONAL

“Prior to Peru, it was up to Mexico, Guatemala, El Salvador and Honduras and others to declare. In the case of Chile, it must have the new supporting documentation, such as the Local Archive and the Master Archive must be presented in a very neat way in the 1951 and 1950 formats respectively, in addition to the DJ 1907 and this until July 1; but it turns out that said information is highly segmented and with a high quality of information, and the fines for not submitting any of these Declarations can reach up to 50 UTA”, said expert Carlos Vargas Alencastre

“Panama must file Form 930 on June 30, 2022, but it already incorporates the local report, master report and country by country report for this year and will also include operations between local Related Parties, the fines can reach up to US$ 5 thousand dollars for the non-presentation or erroneous presentation of the Informative Declaration”, continues Carlos Vargas.

“The Dominican Republic has an expiration date for the DIOPR- Informative Declaration of Operations between Related Parties also on June 30, but like Panama they will release the Local Report, Master Report and Country-by-Country Report and the fines range from 30 minimum wages. 0.25% of the income declared the previous year”, he refers.

“Ecuador must also present the Annex of Operations with Related Parties and the Transfer Pricing Study to the SRI on June 30. The fine for incomplete, inaccurate delivery, with false data or differences with respect to the income statement will be sanctioned with a fine of up to US$ 15,000″, indicates Carlos Vargas.

“In Colombia, form 120 and the supporting documentation of transfer prices may be presented between September 7 and 20, 2022, depending on the last digit of the company’s NIT, here the fines range from 1% of the total value of the regularized operations without this exceeding 5,000 UVT”, highlights the expert.

Carlos Vargas Alencastre invites you to obtain all the information country by country on the TPC Group website and/or application, where you will also find information on other jurisdictions in Europe, Africa, Asia and Oceania.