On 30 December 2021, Paraguay’s tax authorities published a new version of income tax return form including a new section to disclose transfer pricing (TP) adjustments.
The new section of income tax return form differentiates the TP adjustments for intercompany transactions based on the sixth method, which is mandatory for those involving commodities, from transactions analyzed using other transfer pricing methods.
Taxpayers must prepare the local TP report for intercompany transactions in accordance with arm’s length principle carried out during fiscal year 2021.
