In Panama, an information return (Form 930) on the transactions conducted with related parties resident abroad should be filed within six months of the close of the fiscal year. The taxpayers, whose transactions with related parties that took place during 2018, should submit Form 930 before June, 2019. The new form is Form No. 930 V.2 which is effective from fiscal year 2018. Previously used Form 930 V.1 is no longer acceptable. The new version form will request the taxpayers to submit following additional information:
- An economic analysis of each transaction carried out with foreign related parties;
- Business and financial information about comparable companies that were selected to conduct the transfer pricing analysis;
- Information regarding transactions involving intangibles;
- Arm´s length and comparability adjustments made;
- The taxpayer’s profit or loss without adjustments, along with the value of the profitability ratio;
- If adjustments have been made to the profitability ratio, the taxpayer’s adjusted profit or loss, as well as the value of the adjusted ratio.
The new version of the form was issued as a result of a 2016 decree that amended Panama’s transfer pricing rules to bring them in line with the local file recommendations under action 13 of the OECD/G20 BEPS project.
