Brazil

Alternative methods can be used in the case of fixed interest loans in US dollars or Brazilian Reais.

A safe harbour rule applies in respect of documentation requirements for export transactions. Specified margins are required in respect of imports and exports but these are a compulsory margin rather than a safe harbour for transfer pricing purposes. There is however a safe harbour in respect of documentation requirements on export. A safe harbour rule applies in respect of documentation requirements for export transactions. From January 2013 the minimum profitability required for exemption from the obligation to produce transfer pricing documentation for exports is 10% (previously 5%). This may only apply where the net exports to related parties are less than 20% of total net exports.

In Brazil applicable methods are comparable uncontrolled price method (“CUP”), the PIC method has some similarities to the CUP method.

For export transactions a method is used that computes the retail price in the destination country less the profit, and therefore has some similarities to the resale price method. For exports of commodities the PECEX method must be used, and there is no safe harbour. A list of commodities for this purpose is provided by NI 1312/12.

Colombia

In the case of transactions with entities located in tax haven jurisdictions the documentation must include the functions, risks, assets used and the costs and expenses incurred. In relation to the corporate tax rates, a tax reform bill submitted to Congress in October 2012 proposes to reduce the rate to 25%.

The amount of the penalty may be determined taking into consideration the amount of the transaction, the period of time involved and the harm caused by the violation of the rules. For repeated violations a fine of UVT 20,000 may be imposed for each period in which violations take place. An APA may be effective for the year in which it is concluded, the prior year and three years following the year of the agreement.

Ecuador

From January 2013 taxpayers with foreign or domestic related party transactions exceeding USD 3 million in the fiscal year must file a schedule of related party transactions. Taxpayers with foreign and domestic related party transactions above USD 6 million must submit a comprehensive transfer pricing report. This report must be submitted in both paper and electronic form.

Greece

From 2013 the scope of transfer pricing rules has been extended to cover loans, transfers of real estate and transfers of shares and parts of businesses between related entities. The transfer pricing rules also cover transactions with related entities in non-cooperative jurisdictions or those with favourable tax regimes.

A Summary Information Table must be prepared. Companies must prepare a Transfer Pricing Documentation File documenting transactions with Greek and foreign related parties within fifty days after the end of the tax year. This must be made available to the tax authorities within 30 days of a request. Transactions between related entities that do not exceed EUR 100,000 in a period are exempt from the documentation requirements provided that the operating revenue of all the related parties does not exceed EUR 5 million. If the operating revenue exceeds EUR 5 million the threshold for documentation exemption is transactions totalling EUR 200,000 in a tax period. The main corporate income tax rate is 26% from January 2013 (previously 20%). A Summary Information Table must be submitted electronically to the tax authorities within 50 days after the end of the relevant tax year. An APA procedure is to be introduced from 1 January 2014. The scope of the APA may cover transfer pricing methods, comparable  adjustments and key assumptions but cannot specify a nominal price or margin. The term of the APA cannot exceed two years. It will be possible to renew the APA for two further terms of two years each if there are no material changes to the facts and circumstances.

Peru

Resale price method may only be used to price intra-group transactions where there is subsequently a sale or distribution to third parties. Transactional net margin method only elements directly or indirectly related to the transactions under review may be taken into account in determining the profit level indicator to be used. Segmented financial information should be used. Other additional documentation is required to support the transfer price arrived at under this method. In relation to the documentation thresholds a monetary threshold is expected to be established with effect from 1 January 2013 in relation to transactions with tax havens that need to be supported by documentation. A unilateral or bilateral APA may be negotiated.

Philippines

The Transfer Pricing Guidelines state that the rules apply to domestic and cross-border transactions between associated enterprises, which are enterprises that participate directly or indirectly in the management, control or capital of another or are under the direct or indirect management, control or capital of the same persons. There is no specific ownership threshold for control. The Transfer Pricing Guidelines issued in January 2013 provide that the arm’s length principle, the concept of comparability and the basis of choosing the most appropriate method all apply to intangibles. In the Transfer Pricing Guidelines the BIR lays down that the method that gives the most reliable measure of an arm’s length result shall be used. Taxpayers may negotiate an APA with the BIR. Details of the application procedure were not included in the Transfer Pricing Guidelines of 23 January 2013 but are to be issued separately at a later date.  Details of the application procedure were not included in the Transfer Pricing Guidelines of 23 January 2013 but are to be issued separately at a later date.

Thailand

Under proposed legislation profits up to THB 300,000 would not be taxed and profits between THB 300,000 and THB 1 million would be subject to a lower rate of 15%, for the main corporate income tax.