It was reported on 29 August 2012 that, decree 1602, published in the Official Gazette of 27 July 2012, modifies some of the transfer pricing regulations established by Decree 4349 of 2004. Some of the most important modifications, applicable as from its publication, are as follows:

• Taxpayers subject to transfer pricing rules must file contemporaneous documentation before the tax authorities during the term established by yearly regulations. Previously, such documentation had to be prepared and kept by the taxpayer but there was no obligation to file it before the tax authorities;

• Advance pricing agreements (APAs) can be requested by the taxpayer from the tax authorities at any moment of the year. Previously, APAs could only be requested during the first 3 months of each year; Requirements for APA application are detailed in Decree 1,602 and must include at least the following information:

–identification of the requesting taxpayer;

–a description of the parties involved and a description of the functions;

– assets and risks involved in the operation;

–a description of the transactions to be covered by the APA;

–the currency to be used in the transactions;

–the transfer pricing methodology;

–taxable periods in effect; and

–causes for termination.

• Taxpayers that negotiated an APA are not obliged to file contemporaneous documentation when not expressly requested by the tax authorities.