Worldwide transfer pricing reference guide 2014

Peru (continued)
Frequency of tax audit and transfer pricing scrutiny by the tax authority
The likelihood of an annual tax audit is characterized as medium, as is the likelihood that transfer pricing issues being reviewed as part of
a general audit.
The Peruvian Tax Administration has already initiated a number of transfer pricing audits, since the legislation was first introduced in
2001. It has also examined a number of transfer pricing studies submitted by taxpayers and asked for adjustments to be made,
resulting in increased tax liabilities. The likelihood that the transfer pricing methodology will be challenged is characterized as high.
It is expected that SUNAT will significantly increase its transfer pricing audit during the coming years.
APA opportunity
From 2013, unilateral and multilateral APAs will be available for all transactions (cross-border and domestic transactions between related
parties and with tax haven residents). Multilateral APAs will be available only with countries that have entered into double tax avoidance
treaties with the Peruvian Fiscal Administration. Draft regulations detailing the procedure to be followed were recently issued.
Expected reaction to OECD Report on BEPS
It is expected that the tax authorities will progressively adopt the new chapters of the OECD Guidelines and BEPS project; however,
not in the immediate term. Furthermore, it is expected that the country-by-country documentation model will remain in force.
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