Since September 2015, transfer pricing rules have been governed by Law 516 on Investment Promotion, Law 549, or the Law of July 21, 2014, by Supreme Decree No. 2227 of December 31, 2014, and Board Regulatory Resolution No. 10-0008-15 of April 30, 2015 (Transfer Pricing in Transactions Between Related Parties).
Article 2 of Law No. 549 of July 21, 2014, amends Article 45 of Law No. 843 and adds Articles 45 bis and 45 ter to said Law, establishing the transfer pricing regime applicable to commercial and/or financial transactions carried out between related companies for the purposes of determining corporate income tax, incorporating, among other things, the arm’s-length principle, the definition of related parties and the valuation methods for transactions carried out by them, as well as the documentation and supplementary information to be submitted.
Scope of Application
- Taxpayers whose annual transactions with related parties are equal to or greater than Bs15,000,000 must file Electronic Form 601, as well as the Transfer Pricing Study (EPT).
- Taxpayers whose annual transactions with related parties are equal to or greater than Bs7,500,000 and less than Bs15,000,000 must file Form 601.
- Taxpayers whose annual transactions with related parties are less than Bs7,500,000 are required to retain the necessary documentation to demonstrate that their transactions with related parties were conducted at market prices.
Formal Obligations and Deadlines
Electronic Form 601 and the EPT must be filed by the deadline established for filing the tax return and paying Corporate Income Tax (IUE), depending on the type of business activity.
|
Business Activity |
Fiscal Year-End |
Deadline for Annual Transfer Pricing Return |
|
Industrial and Oil Companies. |
For this sector, the fiscal year ends on March 31; from that date, companies have 120 days to file the IUE return. |
July 29 |
|
Rubber, chestnut, agricultural, livestock, and agro-industrial companies |
Their fiscal year ends on June 30; from that date, they have 120 days to file the IUE. |
October 28 |
|
Mining |
They close their fiscal year on September 30; from that date, they have 120 days to file the IUE |
January 28 |
|
Commercial, banking, independent professional services, and others. |
Fiscal year ends on December 31 |
April 29 |
Penalties for Noncompliance
Penalties for failing to file the ETPT or Form 601, or for filing them late, with errors, or with incomplete information will be subject to fines ranging from 50% to 100% of the maximum penalty established in Article 162 of Law No. 2492 of the Tax Code. It should be noted that payment of the fine does not exempt the taxpayer from the obligation to submit the required information.