Internal Revenue Service (SII) Exemption Resolution No.ยฐ 28, the procedure for entering into an Advance Pricing Agreement (APA) is regulated and established.๐ป๐๐ณ๐ฒ๐ฟ๐ฒ๐ป๐ฐ๐ถ๐ฎ (๐๐ฃ๐). Undoubtedly, this mechanism introduces significant changes for taxpayers who conduct transactions with related parties abroad.
We highlight a few key points:
- The prior consultation process is formalized, allowing taxpayers to voluntarily consult with the SII regarding the feasibility of filing an APA application.
- The requirements and documentation are detailed, including the groupโs structure, financial statements, and transfer pricing analysis.
- The deadline is specified: The SII must issue a decision on the application within 12 months from the date the application is certified.
- Bilateral and Multilateral APAs: For the APA to include foreign tax authorities, the applicant must expressly request this and must submit all documentation provided to the foreign tax authorities.
- Retroactive Application of the Agreement: It may be agreed that the APA applies to transactions carried out up to three years prior to the date of the APA, which must be expressly stated in the minutes.
- Termination of APAs: The SII may, at any time, by means of a well-founded resolution, rescind the APA if it was based on erroneous or maliciously false information, or if the essential facts or circumstances considered at the time of its execution, extension, or renewal have changed substantially. In the latter case, the APA may also be rescinded at the taxpayerโs request.
If you would like to determine whether an APA is the most appropriate option for your company, please contact our specialists at mcasasola@dscasahierro.pe
Source: https://n9.cl/qt47m