Peru

In Peru, companies must submit "Local Reports", "Master Reports" and "Country-by-Country Reports" according to the following criteria:

Local Report ("Reporte Local")

Companies are obliged to submit the Local Report (in its version with all annexes) if they comply with the following:

• Their accrued income has exceeded two thousand three hundred (2300) Unidades Impositivas Tributarias (UIT) - USD 3.1MM approx. and,
• They have carried out transactions within the scope of application of the Transfer Pricing rules (operations with related parties, local or foreign, or with "tax havens"), whose amount of operations is equal to or greater than four hundred (400) Tax Units (UIT) - USD 540MM approximately.

The Local Report is submitted in June of each year for the immediately preceding year.

Master File ("Reporte Maestro")

Companies that comply with the following are obliged to file the Master Report:

Their accrued income has exceeded twenty thousand (20,000) Tax Units (UIT) - USD 27MM approx. and 
They have carried out transactions within the scope of application of the Transfer Pricing rules, whose amount of operations is equal to or greater than four hundred (400) Tax Units (UIT).

The Master Report is submitted in October of each year for the immediately preceding year.

Country by Country Report ("Reporte País por País")

The parent company of the multinational group domiciled in the country is obliged to file the Country-by-Country Report whenever the income accrued in the previous taxable year (according to the consolidated financial statements of the parent company) is greater than or equal to two billion seven hundred million nuevos soles (PEN 2,700,000,000).

In case the parent company is not domiciled in the country, the report must be filed by the domiciled company (member of the group) which, among others, has been designated by the group as the representative parent company, or the non-domiciled parent company is not obliged to file this return in its jurisdiction of residence.

The Country-by-Country Report is presented in October of each year for the immediately preceding year.

Rulings of the Fiscal Tribunal (RFT)

• In the case of interest-free loans between related parties, the Tax Court has pointed out that the income imputation rule applies (Art. 32 of the Income Tax Law), no evidence to the contrary is admitted, and interest is determined in accordance with Transfer Pricing. It indicated that it must be assessed that the transaction agreed without interest generates a prejudice to the Treasury (RTF No. 2387-1-2023).
• In the case of valuation of shares, the method used by SUNAT for the valuation must be found in the Income Tax Law (the multiple method applied by SUNAT in the audit is not valid) (RTF No. 7406-1-2021).

Criteria of the Tax Administration (SUNAT)

The National Superintendency of Tax Administration - SUNAT has indicated that:

• The information corresponding to two or more fiscal years prior or subsequent to the fiscal year audited does not cover its use for the determination of the "price ranges" (i.e. only one fiscal year of the assessed company and of the comparables is used, a criterion that the Tax Court has not shared in RTF No. 6526-1-2021). It also points out that it is possible to consider as an analysed party the non-domiciled subject that carried out a transaction with a taxpayer domiciled in the country, in order to assess whether the market value rule is met (Report No. 036-2021).

Judicial pronouncements

Case No. 5387-2021 - Superior Chamber of the Judiciary

The Judiciary upholds SUNAT's exclusion of certain comparable companies on the grounds that, among others, the products are not similar to those marketed by the assessed company and/or have additional lines of business.

Benefit Test - Services received from related parties

Condition for deduction of expenditure:

A service provided by a related party is understood to provide economic or commercial value for the recipient when it provides a benefit or an expected benefit, which is verified if independent parties would have satisfied the need for the service by performing it themselves or through a third party.