SUNAT introduces Mutual Agreement Procedure (MAP) Guidance Version 2.0 (2026), replacing the 2023 framework and setting out updated rules for resolving tax treaty disputes under Double Taxation Treaties (DTTs).
The Peru tax authority (SUNAT) has introduced Mutual Agreement Procedure Guidance Version 2.0 (2026) to replace the previous Mutual Agreement Procedure Guidance Version 1.0 (2023).
The 2026 version of the Mutual Agreement Procedure (MAP) Guide provides a comprehensive framework for resolving tax disputes arising from the application of Double Taxation Treaties (DTTs) signed by Peru.
Objective and Legal Framework.
The guide aims to orient taxpayers on how to use the MAP to address taxation not in accordance with a DTT, such as conflicts regarding residency, withholding taxes, permanent establishments, or transfer pricing adjustments.
Peru currently has nine DTTs in force (with Chile, Canada, Brazil, Mexico, Korea, Switzerland, Portugal, Japan, and the UK), as well as agreements within the Pacific Alliance.
Competent Authority in Peru
The Peruvian Competent Authority (PCA) is the Minister of Economy and Finance, represented by the National Superintendent of SUNAT. Specifically, the Division of Negotiation and Mutual Administrative Assistance in Tax Matters (DNAAMMT) within SUNAT evaluates and proposes resolutions for MAP cases.
The MAP Process
- Modalities: The procedure can be unilateral (resolved by the PCA alone) or bilateral/multilateral (involving negotiation and technical discussions with the Competent Authorities of other states).
- Submission: Peruvian residents must submit their request to the PCA. The request should include identification data, the specific treaty articles in question, relevant facts, tax periods, and an analysis of the case.
- Deadlines: Generally, requests must be submitted within three years of the first notification of the measure causing the dispute, though specific rules apply for older treaties like those with Canada, Brazil, or Chile, often modified by the Multilateral Instrument (MLI).
Access and interaction with domestic remedies
- Effective Access: Taxpayers do not need to exhaust domestic administrative or judicial remedies before seeking a MAP.
- Administrative Appeals: A MAP can run parallel to domestic administrative appeals (reclamación or apelación).
- Judicial Process: Due to constitutional constraints, the PCA cannot resolve a MAP case while it is pending in court. A taxpayer must withdraw from the judicial process for the PCA to start substantive discussions. If a final court ruling is issued, the PCA is bound by it.
Outcomes and additional features
- Conclusion: The process ends with either an agreement (granting full or partial relief) or no agreement. The applicant has the right to accept or reject the final outcome.
- Interests and Penalties: If the MAP results in tax adjustments, related interests and administrative sanctions may be reduced.
- Bilateral Advance Pricing Agreements (BAPAs): The PCA can enter into BAPAs, which may include a “roll-back” provision to cover previous tax years, provided those years are not time-barred and no formal tax determination has been notified for those transactions.
