peru apa map guide - dla piper

APA & MAP COUNTRY GUIDE 2017PERUManaging uncer tainty in the new tax environment

02 | APA & MAP Country Guide 2017 – Peru

PERU

KEY FEATURES

Competent authority

Peruvian Tax Authority (‘SUNAT’) and the General Director of SUNAT or his delegate (‘Tax authorities’)

APA provisions/guidance

Article 32 of Income Tax Code

Types of APAs Unilateral, bilateral, and multilateral APAs are available.

APA acceptance criteria

Requests are more likely to be successful if:

■ transfer pricing issues are complex and uncertainty exists as to how the arm’s length standard should be applied; and

■ there is a high probability of double taxation without an APA.

Key deadlines APA are available for a maximum of three fiscal years following that in which they are requested.

APA term limits There is a four year maximum term for an APA.

Filing fee No specific guidance.

Rollback availability

No specific guidance.

Collateral issues No specific guidance.

PRE-FILING REQUIREMENTS

Overview No specific guidance.

Anonymous pre-filing availability


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PERU (cont’d)

APA APPLICATION REQUIREMENTS

Content of APA application

The application should provide information and documentation necessary for explaining the facts and circumstances of the Taxpayer and selected TP method, including:

■ the Taxpayer’s name, business address, tax identification number, and country of residency of the related entity;

■ a description of the principal activities of the group, including where the activities are carried out;

■ a description of the transaction(s) between the Taxpayer and the related entity;

■ a detailed description of the functions and activities carried out by the Taxpayer and the Peruvian or non-resident related parties that maintain a contractual or business relationship with the Taxpayer, including a description of the assets held and the risks born by each of the parties;

■ the method(s) proposed by the Taxpayer to determine the transfer price, including the criteria and other objective elements used to demonstrate that the method is appropriate for the covered transaction(s);

■ information on comparable transaction(s) or companies, indicating the reasonable adjustments made to eliminate differences; and

■ any other documentation or information necessary or as required by the Tax authorities.

Language The documentation should be submitted in Spanish.

SME provisions No specific guidance.


PERU (cont’d)

OTHER PROCEDURAL CONSIDERATIONS

General The Tax authorities follow a standard application, and monitoring process. There are no unique procedural aspects.

Monitoring & compliance


Renewal procedure


COUNTRY EXPERIENCE

Statistics Statistics on APAs are not publicly available.

MAP PROCEDURE

MAP provisions There are no specific provisions for the MAP procedure in domestic law.

DOUBLE TAXATION TREATY NETWORK

The following treaties include MAP provisions which are the basis for bilateral and multilateral APA negotiations:

BrazilChile ColombiaKorea (Republic of)Mexico(IV)

PortugalSpainSwitzerland

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NOTES

I denotes treaties with MAP arbitration provisions.

II denotes treaties with the USSR that remain applicable until a separate tax treaty is concluded.

III denotes treaties between the countries’ representative office in Taipei and the Taipei Economic and Cultural Office in the relevant country.

IV denotes treaties that became effective within the last five years.

V denotes treaties that are awaiting ratification.

VI denotes MAP provisions identical to para 3, art 25 of the OECD Model Convention with respect to Taxes on Income and on Capital.

VII arbitration is to be conducted under the statutes of the ECJ.

VIII arbitration is to be conducted under the statutes of the ICJ.

PERU (cont’d)


DLA PIPER CONTACTS

Joel CooperCo-Head International Transfer Pricing T +44 207 796 6929 M +44 773 829 5470 [email protected]

Randall FoxCo-Head International Transfer Pricing T +44 207 796 6928 M +44 773 8295 935 [email protected]

Dr Francisco Botto Partner T +511 6161200 [email protected]

PERU

www.dlapiper.com

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Copyright © 2017 DLA Piper. All rights reserved. | JUL17 | 3243606

peru apa map guide - dla piper

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