In Peru, Law Decree No. 1312 was published on 31 December 2016. The Decree amended the existing Transfer pricing reporting requirement by accepting the proposed changes by the Organization for Economic Cooperation and Development (OECD) within the framework of Base Erosion and Profit Shifting (BEPS) Action 13 final report. The decree provides a requirement for filing the Country-by-Country (CbC) report with a master File and a local file. The obligation to submit the local file is applicable for the 2017 financial year, while the submission of the master file and CbC reporting is compulsory from the beginning of the 2018 financial year.
In accordance with the new reporting requirements, taxable persons with annual revenue for the financial year of more than 2,300 tax units are required to provide the local file. Taxpayers who are members of a group with an annual turnover of more than 20,000 tax units (approximately US $ 23.82 million) are required to provide the master file with information on the Group’s business and TP policies. Taxpayers who are members of a group of multinational companies are required to submit the CbC report annually with information on revenue, taxes and business activities for each company within the group;
The Decree also amended the rules for the setting of the pricing of cross-border commodity transactions. According to the decree, the comparable uncontrolled price (CUP) method is the most appropriate method for determining the market price of commodities in commodity transactions between associated companies. In addition, the Decree introduces general Transfer pricing rules for intra-group services. The Decree established a set of criteria that can be used to classify services as low-value adding intra group services.