|Rodrigo, Elías & Medrano Abogados|
While transfer pricing in Peru has stood still during the past year in terms of legislation updates, there have been movements in other parts of the market. New Peruvian president Pedro Pablo Kuczynski has encouraged the tax authorities to take a new approach to auditing companies, but it is a transition that will not necessarily happen overnight.
Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT), Peru's tax authority, is trying to show a new, friendlier face and make it easier for taxpayers to pay their taxes, said Dante Sanguinetti, partner at Philippi Prietocarrizosa Ferrero DU & Uría.
"They are trying to be more helpful and closer to the taxpayers, and they have people to help taxpayers to file and accomplish all the formalities. They're trying to change the image they had," said Carlos Chirinos, tax manager at Grant Thornton.
The new image, however, has not changed the substance of how the tax inspectors carry out their audits. Tax practitioners say that it is well known in the industry that the tax inspectors have collecting figures and an incentive to collect taxes.
With regards to the OECD, Peru is not yet a member but has been engaging with the organisation through participating in the substantive work of many of the OECD's specialised committees. However, tax practitioners are uncertain about whether the government will implement the actions in the OECD's BEPS project.
"We [Peru] haven't yet implemented any rules like other countries have been doing, but we are developing transfer pricing rules according to international trends," said Gustavo Lazo, on June 2 2016, when he was head of tax at Estudio Olaechea (Lazo has since moved to Rodrigo, Elías & Medrano Abogados). "We have been watching the OECD, but the government hasn't yet related any laws regarding that."
Superintendencia Nacional de Aduanas y de Administración Tributaria
Av. Garcilaso de la Vega 1472, Lima
Tel: +51 1 315 0730; +51 1 634 3300; +51 1 634 3600
(As of April 2016)
|Corporate income tax rate||28% (a)(b)|
|Capital gains tax rate||0/5/30% (c)|
|Branch tax rate||28% (d)|
|Technical assistance||15% (f)|
|Digital services||30% (f)|
|Branch remittance tax||6.8% (d)|
Net operating losses (years)
Source: EY 2016 Worldwide Corporate Tax Guide