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Legal ReferenceIncome Tax Law, Chapter V, Article 32, paragraph 4

Article 32, paragraph 4) of the Income Tax Law establishes that the market value for transactions between related parties, or made from, towards, or through non cooperative or low or null taxation countries or jurisdictions, or for transactions made with persons whose income, revenues or gains arising from such transactions are subject to a preferential tax regime, shall be the prices and amount of considerations that would have been agreed with or between independent parties in comparable transactions, under the same or similar conditions.

Legal ReferenceIncome Tax Law, Chapter V, Article 32-A, subsection h)

According to Article 32-A, subsection h) of the Income Tax Law, the OECD Transfer Pricing Guidelines (TPG) are used as a source of interpretation, provided that they do not oppose the provisions approved by that law.

Legal ReferenceIncome Tax Law, Chapter V, Article 32-A, subsection b); Income Tax Law Regulation, Chapter VI, Article 24

Article 32-A, subsection b) of the Income Tax Law establishes that two or more persons, companies or entities are considered to be related parties when one of them participates directly or indirectly in the management, control or capital of the other; or when the same person or group of persons participate directly or indirectly in the management, control or capital of several persons, companies or entities. Likewise, there is a related party relationship when the transaction is carried out using intermediaries whose purpose is to conceal a transaction between related parties. Article 32-A, subsection b) also states that the Income Tax Law Regulation shall indicate the cases in which the parties are deemed to be related. According to that, Article 24 of the Income Tax Law Regulation establishes 12 specific situations where parties are deemed related, including ownership thresholds (more than 30%), common directors/executives, consolidation of financial statements, and business collaboration contracts.

Legal ReferenceIncome Tax Law, Chapter V, Article 32-A, subsection e)

According to Article 32-A, subsection e) of the Income Tax Law, the prices of transactions subject to the scope of applications of transfer pricing rules shall be determined in accordance with any of the following internationally accepted methods, for which purpose the one that is most appropriate to reflect the economic reality of the transaction shall be considered: (1) CUP, (2) Resale price method, (3) Cost plus method, (4) Profit method, (5) Residual Profit Split Method, (6) Transactional Net Margin Method (TNMM), and (7) Other Methods.

• CUP (provided)
• Resale Price (provided)
• Cost Plus (provided)
• TNMM (provided)
• Profit Split (provided)
• Other (provided)

Legal ReferenceIncome Tax Law, Chapter V, Article 32-A, subsection e); Income Tax Law Regulation, Chapter XIX, Article 113

According to Article 32-A, subsection e) of the Income Tax Law, the prices of the transactions subject to the scope of application of transfer pricing rules shall be determined according to the most appropriate method to reflect the economic reality of the transaction. Article 113 of the Income Tax Law Regulation refers to criteria such as compatibility with business activity, availability of information, degree of comparability, and level of adjustment needed.

• Hierarchy of methods (not selected)
• Most appropriate method (selected)
• Other (if so, please explain) (not selected)

Legal ReferenceIncome Tax Law, Chapter V, Article 32-A, subsection e), paragraph 1; Income Tax Law Regulation, Chapter XIX, Article 113-A

According to Article 32-A, subsection e), paragraph 1) of the Income Tax Law, which develops the Comparable uncontrolled price method (CUP), in the case of export or import of goods with known quotation values in international markets, whether local or destination, including derivative financial instruments markets, the arm’s length price shall be determined based on such quotation value.

Legal ReferenceIncome Tax Law, Chapter V, Article 32-A, subsection d); Income Tax Law Regulation, Chapter XIX, Articles 110 to 115

Peru largely follows the guidance on comparability analysis outlined in Chapter III of the TPG.

Legal ReferenceIncome Tax Law, Chapter V, Article 32-A, subsection d) (third paragraph)

According to Article 32-A, subsection d) of the Income Tax Law, when for the purpose of determining comparable transactions, local information is not available, taxpayers may use information from foreign companies and should make the necessary adjustments to reflect the market differences.

Legal ReferenceTax Code, Book II, Title II, Chapter II, Article 62, paragraph 18

According to Article 62, paragraph 18 of the Tax Code, the taxpayer can have access to the information of the unrelated third parties used as comparable by SUNAT. That information will not contain the number of RUC nor the name of the taxpayer, in accordance with tax confidentiality provisions.

Legal ReferenceIncome Tax Law Regulation, Chapter XIX, Articles 114 and 115

Article 114 of the Income Tax Law Regulation establishes that, where there are two or more comparable transactions a range of prices, amount of considerations or profit margins must be obtained. To determine the range, the interquartile method and the median calculation shall be used, in accordance with Article 115.

Legal ReferenceIncome Tax Law, Chapter V, Article 32-A, subsection d); Income Tax Law Regulation, Chapter XIX, Article 111

The domestic regulation states that, in order to eliminate differences, through reasonable adjustments, between the transactions that are compared or between the characteristics of the parties involved, elements such as payment period, negotiated amounts, marketing and publicity, cost of intermediation, conditioning, freight and insurance, and physical/content nature should be taken into consideration.

Legal ReferenceIncome Tax Law Regulation, Chapter XIX, Article 110, paragraph 1, subsection d)

The Income Tax Regulation establishes that in order to determine whether the transactions are comparable, the nature of the transaction and the method to be applied must be taken into account, as well as specific elements for definitive assignment or use of intangible assets (contractual form, identification, duration, degree of protection, and performance of obligations).

Legal ReferenceIncome Tax Law, Chapter V, Article 32-A, subsection i)

The Income Tax Law establishes that the taxpayer must comply with the benefit test and provide requested documentation as conditions for deduction. The benefit test is met when the service provides economic or commercial value for the recipient. Documentation must evidence effective provision, nature, need, costs, and reasonable allocation criteria.

Legal ReferenceIncome Tax Law, Chapter V, Article 32-A, subsection i); Income Tax Law Regulation, Chapter XIX, Article 118-A

Article 32-A, subsection i) of the Income Tax Law and Article 118-A of the Income Tax Law Regulation establish a limit on the deduction of the cost or expense for low value-adding services, which should be determined on the basis of the sum of the costs and expenses incurred by the service provider as well as its profit margin, which cannot exceed (5%).

Legal ReferenceIncome Tax Law, Chapter VI, Article 41 (last paragraph)

Article 41 establishes that, in the case of imported goods, commissions recognized to related entities that have acted as intermediaries will not be included in the depreciable value, unless effective provision is verified and the commission does not exceed that recognized to independent third parties.

Legal ReferenceIncome Tax Law Regulation, Chapter XIX, Article 110, paragraph 1, subsection a)

Article 110, paragraph 1), subsection a) of the Income Tax Law Regulation establishes characteristics for determining comparability in financial transactions, including principal amount, term, guarantees, debtor creditworthiness, interest rate, fees, risk rating, country of residence, currency, and date.

Legal ReferenceIncome Tax Law, Chapter VI, Article 37 subsection a); Income Tax Law Regulation, Chapter VI, Article 21º, subsection a); UIT (Peruvian Tax Unit)

The recommendations of Action 4 were incorporated in Article 37, subsection a) of the Income Tax Law. Net interest is not deductible in the part that exceeds 30% of the EBITDA of the previous year. This limit applies to operations between independent and related parties, with certain exceptions (e.g., financial/insurance companies, taxpayers with net profits below 2,500 UIT).

Cost Contribution Arrangements (CCAs) are not expressly prohibited. Nevertheless, our domestic legislation does not contain specific guidance on this topic. Therefore, general transfer pricing provisions will be applicable in these cases.

• Yes. If so, does your domestic transfer pricing framework follow (or largely follow) the guidance in Chapter VIII of the TPG? No (selected)

Peru requires Master file, Local file, and Country-by-country report consistent with OECD Annexes.

• Master file consistent with Annex I to Chapter V of the TPG (selected)
• Local file consistent with Annex II to Chapter V of the TPG (selected)
• Country-by-country report consistent with Annex III to Chapter V of the TPG (selected)
• Specific transfer pricing returns (separate or annexed to the tax return) (not selected)
• Other (specify): (not selected)

Legal ReferenceIncome Tax Law, Chapter V, Article 32-A, subsection g); Income Tax Law Regulation, Chapter XIX, Articles 116 and 117; UIT (Peruvian Tax Unit)

Local File: Threshold > 2,300 UIT accrued income. Submission: Yearly (May). Master File: Threshold > 20,000 UIT accrued group income. Submission: Yearly (September). CbCR: Threshold > PEN 2,700 million accrued group income. Submission: Yearly (September). Language: Spanish.

Legal ReferenceTax Code, Book IV, Title I, Article 176, paragraphs 2, 4 and 8; Tax Code, Book IV, Title I, Article 177, paragraph 27

Punishable offenses include: (2) Not submitting affidavits (fine 0.6% of net income); (4) Submitting incomplete/nonconforming affidavits (fine 0.6% of net income); (8) Filing without considering form/conditions (fine 30% of a UIT). Failure to show/file documentation (Local File, Master File, CbCR) is a fine of 0.6% of net income (min 10% UIT, max 25 UIT).

Legal ReferenceSuperintendence Resolution N° 014-2018/SUNAT, Articles 2 and 3; Superintendence Resolution N° 163-2018/SUNAT, Articles 2 and 11

SUNAT may exclude taxpayers. Local File: Exempt if accrued income ≤ 2,300 UIT and transactions < 100 UIT. Master File: Exempt if accrued group income ≤ 20,000 UIT and transactions < 400 UIT. CbCR: Exempt if filed by parent company in another jurisdiction (with notification).

Legal ReferenceTax Code, Book II, Title V, Article 95-A; Income Tax Law, Chapter V, Article 32-A, subsection f); Income Tax Law Regulation, Chapter XIX, Article 118; Peru's MAP Profile

Available mechanisms include Rulings (consultations under Art 95-A), APAs (Unilateral, Bilateral, Multilateral), and Mutual Agreement Procedures (MAP).

• Rulings (selected)
• Enhanced engagement or cooperative compliance programmes (not selected)
• Advance Pricing Agreements (APA) (selected)
• Unilateral APAs (selected)
• Bilateral APAs (selected)
• Multilateral APAs (selected)
• International Compliance Assurance Programme (ICAP) (not selected)
• Mutual Agreement Procedures (selected)

We are currently evaluating the legislative framework that must be issued to comply with the IF political commitment.

Legal ReferenceIncome Tax Law, Chapter V, Article 32-A, subsection c); Income Tax Law Regulation, Chapter XIX, Article 109, subsection c)

Article 32-A, subsection c) establishes that when, in accordance with a Convention for the Avoidance of Double Taxation, competent authorities of the counterparty make an adjustment, and it is accepted by the Peruvian tax administration, the Peruvian resident related party may file an amended return reflecting the corresponding adjustment.

Peruvian legislation does not require or allow (explicitly) year-end adjustments. However, taxpayers can make internal pre-assessments and adjustments after the end of the year through additions to their income tax return.

Legal ReferenceIncome Tax Law Regulation, Chapter XIX, Article 109, subsection d); Income Tax Law, Chapter V, Article 24-A, subsection g)

According to Article 109, subsection d) of the Income Tax Regulation, the adjustment resulting from the application of transfer pricing rules will be considered as an indirect disposition of income subject to the dividend tax (5%) as provided for in Article 24-A subsection g).

• Article 7 as it read before 2010. (selected)
• Article 7 as it reads after 2010. (not selected)

In Peru, the application of the AOA is not possible since Article 7 of all our current tax treaties are based on the pre-2010 OECD Model Tax Convention. However, according to domestic legislation, non-resident companies and their PE are related parties and transfer pricing provisions apply.

Regulations on APA and other methods are planned to be issued before the end of 2025.