Through SRI Resolution No. NAC-DGERCGC23-00000025, published on September 14, 2023, in the Second Supplement No. 396 of the Official Register, introduced reforms regarding transfer pricing (TP). The most relevant aspects can be summarized as follows:
- Scope of Application: To determine the formal obligation to file the Comprehensive Transfer Pricing Report, the threshold for related-party transactions is reduced from USD 15 million to USD 10 million on a cumulative basis.
- A taxpayer may not file a new Comprehensive Transfer Pricing Report for a fiscal year in which the Tax Administration is exercising or has exercised its authority to make a tax assessment.
- The following transactions are excluded when determining formal transfer pricing obligations:
- Cash payments, in U.S. dollars, of equity returns (dividends) or liabilities (capital payments).
- Income specified in Articles 27, 27.1, and 31 of the Internal Tax Regime Law, as well as assets, liabilities, or expenses of the taxpayer attributable to the activity generating such income.
- With regard to transactions using a transfer pricing methodology approved via a Prior Ruling (CVP), the provision that allowed for the exclusion of transactions involving local related parties participating in the CVP has been eliminated.
- With respect to domestic transactions, the following should also be considered reportable transactions for PT purposes if the taxpayer meets the following criteria:
- Declares an income tax base of less than zero;
- Has taken advantage of any type of income tax exemption;
- Is eligible for a total or partial reduction or abatement of the income tax rate;
- Is an administrator or operator of a Special Economic Development Zone;
- Is engaged in the exploration or exploitation of non-renewable natural resources; or
- Have holders of rights representing its capital who are residents of or established in tax havens or low-tax jurisdictions.”
- With regard to the technical rules for applying the
transfer pricing regime, information from the immediately preceding year with a fiscal year-end after June 30 of that year may be used, provided that it is demonstrated that the relevant conditions in both periods did not change.
This Resolution shall take effect upon its publication in the Official Register.