Supreme Decree No. 302-2025-EF, published on December 17, 2025, in the official gazette El Peruano, introduces significant changes to the Income Tax Law Regulations with the purpose of regulating the application of so-called “other methods” of transfer pricing valuation. This regulatory provision responds to the amendment of paragraph 7) of subsection e) of Article 32-A of the Income Tax Law, which was introduced by Legislative Decree No. 1663 and recognizes additional methods when traditional methods do not adequately reflect the economic reality of certain intra-group transactions.
Context and need for the amendment
The transfer pricing regime in Peru, as in many jurisdictions, is based on the arm’s length principle, which requires that transactions between related parties be valued in a manner that reflects the conditions that would have been agreed upon by independent parties. Traditionally, the Income Tax Law and its regulations develop six classic valuation methods: comparable uncontrolled price, resale price, cost plus, profit split, residual profit split, and net transaction margin.
However, the addition of paragraph 7) to Article 32-A broadened this framework by allowing other valuation methods to be applied when traditional methods are not appropriate, for example, in complex transactions, transfers of intangibles, or lack of reliable comparables. However, until the publication of Supreme Decree No. 302-2025-EF, the Law lacked specific regulations for these cases, which created uncertainty in its practical application.
Main amendments introduced by the Supreme Decree
1. Adaptation of the Regulations to the legislative change
The Supreme Decree modifies the first paragraph of Articles 111, 114, and 115 of the Income Tax Law Regulations (approved by Supreme Decree No. 122-94-EF) to specify that its provisions apply exclusively to the traditional methods provided for in paragraphs 1) to 6) of subsection e) of Article 32-A of the Law. This implies a clear regulatory separation between the treatment of classical methods and the other methods introduced in paragraph 7).
- Article 111 (Elimination of differences): now applies only to traditional methods, specifying that reasonable adjustments between comparable transactions or the characteristics of related parties must be considered within that specific framework.
- Article 114 (Price range): the determination of prices, consideration amounts, or profit margins and the obtaining of comparable ranges are limited to the methods indicated in paragraphs 1) to 6).
- Article 115 (Determination of the interquartile method and calculation of the median): it is reaffirmed that prices calculated by applying traditional methods are analyzed in accordance with the established statistical criteria.
This regulatory clarification avoids broad or ambiguous interpretations that could have arisen when applying these articles to alternative methods, strengthening legal certainty for taxpayers.
2. Incorporation of the new Article 113-B: Regulation of “other methods”
The most significant change in the Supreme Decree is the incorporation of Article 113-B into the regulations, dedicated exclusively to the other methods provided for in paragraph 7) of subsection e) of Article 32-A of the Income Tax Law. This article establishes a specific regulatory framework for these methods, with the following key elements:
a) International best practices:
It specifies that, for the application of other methods, the provisions of internationally accepted best practices in force on January 1, 2025, such as the International Valuation Standards issued by the International Valuation Standards Council, must be taken into account, provided that they do not conflict with the provisions of the Law.
b) Content of the technical report:
The technical report required to justify the application of an alternative method must contain, at a minimum, the same information required for reports prepared under the International Valuation Standards in force on January 31, 2025. This implies that the documentation must be aligned with recognized professional standards, providing greater technical rigor and reliability in support of the methodological choice.
c) Supporting documentation from the taxpayer:
The taxpayer must have information and/or documentation proving:
- The need to use a method other than traditional methods and the justification for choosing it as the most appropriate, in accordance with paragraph 7.1 of Article 32-A of the Law.
- The specific elements contained in the technical report.
- This documentation may be required by SUNAT in the context of a verification or audit.
Practical implications and considerations for taxpayers
The entry into force of Supreme Decree No. 302-2025-EF represents an important regulatory advance for the Peruvian transfer pricing regime, as it provides clear, technical criteria aligned with international standards for the application of alternative valuation methods. Among the implications are:
- Greater predictability: clarity in the requirements for other methods reduces regulatory uncertainty and interpretive discretion, facilitating tax planning for complex transactions.
- Documentary rigor: taxpayers must strengthen their technical reports with documentation in accordance with international valuation standards, which will require specialized technical expertise and substantiated evidence.
- More stringent auditing: SUNAT is empowered to request information and documentation during verification processes, which increases the importance of having solid technical support for methodological choices.
Conclusion
Supreme Decree No. 302-2025-EF plays a key regulatory role by incorporating a specific framework for the application of transfer pricing methods that are not covered by traditional methods. By defining the scope of application of these methods, establishing technical requirements, and aligning documentation with international best practices, the regulation strengthens companies’ ability to justify complex transactions and provides tax authorities with more technical support for evaluating such operations.
This regulation represents an important step in the consolidation of the transfer pricing regime in Peru, promoting consistency with international practices and greater legal certainty for taxpayers and tax administrators.
Do you require specialized advice?
At TPC Group, we are a company specializing in transfer pricing with extensive experience in the application of valuation methods, preparation of technical reports, and regulatory compliance in accordance with the current income tax framework in Peru. We assist our clients in the correct interpretation and application of Supreme Decree No. 302-2025-EF, providing comprehensive support in documentation, methodological analysis, and technical defense in the face of audit processes.
Source: El Peruano