In October 2018, the government of Uruguay issued Decree No. 353/2018 providing regulatory guidance regarding new transfer pricing (TP) documentation requirements. The decree clarifies guidance to implement the transfer pricing documentation requirements introduced by the 2017 law.
Large Multinational Group” is defined as a Multinational Group with total consolidated group revenue of EUR 750 million or more, during the fiscal year immediately preceding the reporting fiscal year as reflected in its consolidated financial statements for such preceding fiscal year, must provide the Uruguayan tax authorities with a CbC report.
In these instances, the local taxpayer must provide the Uruguayan tax authorities, on an annual basis, the name and fiscal residence of the company that will present the CbC report on behalf of the group. For tax years starting on or after 1 January 2017, taxpayers must provide the Uruguayan tax authorities with the CbC report and Master file within 12 months after the close of their tax year.
Decree No. 353/2018 sets forth the information to be included in the CbC report and Master file.
The CbC report must include:
- Information identifying all the entities of the multinational group; the country of tax residence or country of incorporation when it differs from the country of residence; and a description of their business activities;
- The group’s consolidated gross income distinguishing between income from related and non-related entities;
- Pre-tax revenues for the fiscal year; income tax paid during the year; income tax accrued during the year; and information about the share capital, accumulated results, number of employees, and tangible assets.
The Master file must include:
- Organizational structure
- Description of the main sources of the group’s business income
- Business activities
- Financial activities between related entities (a copy of the group’s consolidated financial statements)
- Intangibles
- a list and brief descriptions of the relevant agreements for the provision of services between or among group members
- FAR analysis
- Descriptions of the main restructurings of business operations, acquisitions, and divestitures.
