On 4 March 2025 the OECD issued a stage one simplified peer review report on Peru under BEPS action 14. The report sets out the results of Stage 1 of the simplified peer review of the implementation of the minimum standard on making dispute resolution mechanisms more effective. The review concludes that overall Peru meets almost all the elements of the Action 14 minimum standard.

The peer review report notes that Peru has a small tax treaty network and a basic MAP programme, but limited experience with resolving mutual agreement procedure (MAP) cases. All but one of Peru’s tax treaties contain a provision relating to MAP, but updates are needed to eight of the treaties to bring them fully in line with the standard. Peru has signed the Multilateral Instrument (MLI) to include BEPS-related provisions into tax treaties, and this could be used to update three of the tax treaties. The other tax treaties can be updated through bilateral negotiations; and an amending protocol is ongoing for four of these treaties.

The report notes that Peru has in place a bilateral APA programme, but this does not allow roll-back of bilateral APAs. Peru meets most of the requirements on availability and access to MAP, providing access to MAP in almost all eligible cases. However, Peru will deny access to MAP in eligible cases where the issue under dispute is pending before, or been decided by, a judicial authority under Peru’s domestic law.

A documented bilateral notification process has been established for situations where the competent authority considers an objection raised by taxpayers in a MAP request as not justified. There is also comprehensive guidance on the availability of the MAP and how the procedure is applied in practice. In the period 2017 to 2022 the average time necessary to close MAP cases was 12.51 months, which was within the targeted timeframe of 24 months. Peru’s competent authority operates fully independently from the audit function of the tax authorities and adopts a pragmatic approach to resolve MAP cases in an effective and efficient manner. Its organisation is adequate and the performance indicators used are appropriate to perform the MAP function.