Worldwide transfer pricing reference guide 2014

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Paraguay Taxing authority and tax law Taxing authority: Paraguay Tax Authorities (Subsecretaría de Estado de Tributación). Tax law: Income Tax Law. Relevant regulations and rulings Paraguay does not have a specific transfer pricing law; however in October 2013 the National Congress enacted a new tax law that states a general disposition related to Sale Price Adjustment (Law N° 5061/13) that will be regulated by the Paraguayan Tax Authority. This new disposition is considered as a kind of transfer pricing regulation. This new regulation allows the Paraguayan Tax Authority to amend prices related to exportation operations for Corporate Income Tax purposes only. Decree N° 1012 dated 26 December 2013 establishes that the mentioned disposition will be in force as of 1 July 2014. Worldwide transfer pricing reference guide 228
Peru Taxing authority and tax law Tax authority: Superintendencia Nacional de Administración Tributaria (SUNAT) Tax law: Article 32 (Item 4) and Article 32-A of the Peruvian Income Tax Law (PITL). The transfer pricing regulations are stated in Article 24 and Chapter XIX (Articles 108 to 119) of the PITL. Relevant regulations and rulings Transfer pricing rules have been effective in Peru since 1 January 2001. Nevertheless, over the years these rules have undergone several amendments into the PITL and tax code. Transfer pricing rules apply both to cross-border and domestic transactions between related parties and all transactions with residents in tax haven jurisdictions. The transfer pricing adjustments are applicable solely when (1) the value agreed by the related parties results in a lower taxable income than the one at arm´s length or (2) in any other case, if the tax authority considers that the related party transactions have reduced the amount of tax that would otherwise be due, compared to the same transactions between unrelated parties. The regulations consider that a reduced amount of income tax arises, for example, but not exclusively, in the following instances: • A deferral of income is determined • Higher tax losses have been determined than those which would have accrued at arm’s length OECD guidelines treatment The PITL refers to the OECD Guidelines as a source of interpretation for transfer pricing analysis, as long as they do not contradict the PITL. Priorities/pricing methods Peruvian law implicitly adopts a best method rule, unless the transaction being evaluated is a sale or purchase of commodities or its derivatives. Under Peruvian legislation, the transfer pricing methods identified are CUP, Resale Price, Cost Plus, Profit Split, the Residual Profit Split and TNMM. A forced CUP should be applied in cross border transactions of commodities and its derivatives in which the counterparty is a trading company. A comprehensive list of the products that should be evaluated with this method is not available yet, however, it does include metals and its derivatives, agricultural goods and its derivatives, hydrocarbons and its derivatives and fishmeal. The method has to be applied by adding or deducting to the internationally listed commodity price, certain industry common price adjustments including treatment charges, premiums or discounts. Specific regulations are pending issue. If certain conditions are met by the trading company, the forced CUP should not be applied. Compliance with such conditions should be certified by a third party. Transfer pricing penalties Noncompliance with the obligation to present a transfer pricing technical study, or documentation and information supporting the calculation of the prices agreed to in transactions with related parties, is subject to a penalty of 0.6% of the company’s net income for the year preceding that which is under scrutiny. The penalty cannot be less than 10% of a Tax Unit, nor more than 25 Tax Units.1 Likewise, noncompliance with the obligation to file the transfer pricing return in accordance with the dates established by SUNAT subjects the taxpayer to a fine of 0.6% of the company’s net income for the year preceding that which is under scrutiny. The penalty cannot be less than 10% of a Tax Unit nor more than 25 Tax Units. The adjustments to annual taxable income resulting from the tax authority’s application of the transfer pricing provisions will be subject to additional penalties of up to 50% of the resulting tax deficiency (income misstatement penalties). Worldwide transfer pricing reference guide 229
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Worldwide Transfer Pricing Referenc
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Worldwide transfer pricing referenc
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Nigeria 215 Norway 217 Oman 220 Pak
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The content is current as of 28 Feb
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CUP (comparable uncontrolled price)
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Albania (continued) Priorities/pric
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Algeria Taxing authority and tax la
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Algeria (continued) Return disclosu
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Angola (continued) Transfer pricing
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Argentina Taxing authority and tax
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Argentina (continued) Transfer pric
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Australia Taxing authority and tax
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Australia (continued) Priorities/pr
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Australia (continued) Documentation
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Australia (continued) Frequency of
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Austria (continued) Documentation r
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Bahrain Taxing authority and tax la
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Bangladesh (continued) Penalty reli
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Belgium Taxing authority and tax la
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Belgium (continued) Statute of limi
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Bolivia Taxing authority and tax la
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Botswana Taxing authority and tax l
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Brazil (continued) Relevant regulat
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Brazil (continued) Priorities/prici
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Brunei Taxing authority and tax law
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Bulgaria (continued) Transfer prici
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Bulgaria (continued) Return disclos
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Cameroon Taxing authority and tax l
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Canada Taxing authority and tax law
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Canada (continued) Documentation re
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Chile Taxing authority and tax law
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Chile (continued) Return disclosure
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China (continued) Documentation req
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Colombia Taxing authority and tax l
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Colombia (continued) Penalty relief
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Republic of Congo Taxing authority
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Costa Rica Taxing authority and tax
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Croatia Taxing authority and tax la
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Croatia (continued) Frequency of ta
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Czech Republic Taxing authority and
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Denmark Taxing authority and tax la
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Denmark (continued) Documentation d
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Dominican Republic Taxing authority
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Dominican Republic (continued) Expe
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Ecuador (continued) Priorities/pric
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Ecuador (continued) Return disclosu
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Egypt Taxing authority and tax law
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Egypt (continued) Frequency of tax
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El Salvador (continued) Transfer pr
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Estonia Taxing authority and tax la
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Fiji Taxing authority and tax law T
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Fiji (continued) Frequency of tax a
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Finland (continued) Documentation r
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France (continued) Transfer pricing
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France (continued) Documentation re
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France (continued) Expected reactio
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Gabon (continued) Transfer pricing-
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Georgia (continued) Documentation r
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Germany Taxing authority and tax la
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Germany (continued) For late filing
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Ghana Taxing authority and tax law
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Ghana (continued) APA opportunity T
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Greece (continued) Transfer pricing
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Guatemala Taxing authority and tax
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Honduras Taxing authority and tax l
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Hong Kong (SAR) Taxing authority an
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Hong Kong (SAR) (continued) APA opp
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Hungary (continued) Priorities/pric
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Hungary (continued) Documentation r
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Iceland Taxing authority and tax la
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India Taxing authority and tax law
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India (continued) Documentation req
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Indonesia Taxing authority and tax
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Indonesia (continued) Frequency of
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Ireland Taxing authority and tax la
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Ireland (continued) Frequency of ta
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Israel (continued) Priorities/prici
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Italy Taxing authority and tax law
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Italy (continued) Transfer pricing
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Italy (continued) Frequency of tax
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Japan (continued) Transfer pricing
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Japan (continued) APA opportunity U
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Kazakhstan Taxing authority and tax
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Kazakhstan (continued) Frequency of
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Kenya (continued) Documentation req
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Kosovo (continued) Documentation re
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Kuwait (continued) Documentation re
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Latvia Taxing authority and tax law
Page 177 and 178: Lebanon Taxing authority and tax la
Page 179 and 180: Lithuania Taxing authority and tax
Page 181 and 182: Luxembourg Taxing authority and tax
Page 183 and 184: Former Yugoslav Republic of Macedon
Page 185 and 186: Malaysia Taxing authority and tax l
Page 187 and 188: Malaysia (continued) Frequency of t
Page 189 and 190: Maldives (continued) Statute of lim
Page 191 and 192: Malta (continued) Return disclosure
Page 193 and 194: Mauritius (continued) APA opportuni
Page 195 and 196: Mexico (continued) Transfer pricing
Page 197 and 198: Mexico (continued) Return disclosur
Page 199 and 200: Montenegro (continued) Frequency of
Page 201 and 202: Morocco (continued) Transfer pricin
Page 203 and 204: Myanmar Taxing authority and tax la
Page 205 and 206: Namibia Taxing authority and tax la
Page 207 and 208: Netherlands Taxing authority and ta
Page 209 and 210: Netherlands (continued) Statute of
Page 211 and 212: New Zealand Taxing authority and ta
Page 213 and 214: New Zealand (continued) Frequency o
Page 215 and 216: Nigeria Taxing authority and tax la
Page 217 and 218: Norway Taxing authority and tax law
Page 219 and 220: Norway (continued) Frequency of tax
Page 221 and 222: Oman (continued) Frequency of tax a
Page 223 and 224: Panama Taxing authority and tax law
Page 225 and 226: Panama (continued) Expected reactio
Page 227: Papua New Guinea (continued) Docume
Page 231 and 232: Peru (continued) Frequency of tax a
Page 233 and 234: Philippines (continued) Transfer pr
Page 235 and 236: Poland Taxing authority and tax law
Page 237 and 238: Poland (continued) Transfer pricing
Page 239 and 240: Poland (continued) Return disclosur
Page 241 and 242: Poland (continued) APA opportunity
Page 243 and 244: Portugal (continued) Transfer prici
Page 245 and 246: Portugal (continued) APA opportunit
Page 247 and 248: Qatar (continued) OECD guidelines t
Page 249 and 250: Qatar (continued) Return disclosure
Page 251 and 252: Romania (continued) Documentation r
Page 253 and 254: Russian Federation Taxing authority
Page 255 and 256: Russian Federation (continued) Freq
Page 257 and 258: Saudi Arabia (continued) Transfer p
Page 259 and 260: Senegal (continued) Documentation r
Page 261 and 262: Serbia Taxing authority and tax law
Page 263 and 264: Singapore Taxing authority and tax
Page 265 and 266: Singapore (continued) Frequency of
Page 267 and 268: Slovak Republic (continued) Documen
Page 269 and 270: Slovenia Taxing authority and tax l
Page 271 and 272: Slovenia (continued) Transfer prici
Page 273 and 274: South Africa (continued) Penalty re
Page 275 and 276: South Korea (Republic of Korea) Tax
Page 277 and 278: South Korea (Republic of Korea) (co
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Spain (continued) Penalty relief So
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Spain (continued) APA opportunity T
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Sri Lanka (continued) Return disclo
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Sweden (continued) Documentation re
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Switzerland Taxing authority and ta
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Taiwan Taxing authority and tax law
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Taiwan (continued) Return disclosur
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Tanzania Taxing authority and tax l
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Thailand Taxing authority and tax l
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Thailand (continued) Frequency of t
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Turkey (continued) Priorities/prici
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Uganda Taxing authority and tax law
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Ukraine Taxing authority and tax la
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Ukraine (continued) Transfer pricin
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United Kingdom Taxing authority and
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United Kingdom (continued) Transfer
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United States (continued) Transfer
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Uruguay Taxing authority and tax la
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Uruguay (continued) APA opportunity
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Venezuela Taxing authority and tax
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Venezuela (continued) Expected reac
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Vietnam (continued) Relevant regula
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Vietnam (continued) Documentation d
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Zimbabwe Taxing authority and tax l
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Zimbabwe (continued) Relevant regul
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Transfer pricing contacts Area cont
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Jurisdiction contacts • El Salvad
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Jurisdiction contacts • Rep. of C
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EY | Assurance | Tax | Transactions
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Worldwide transfer pricing reference guide 2014

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