The SUNAT (Superintendencia Nacional de Aduanas y Administración Tributaria – National Superintendence of Customs and Tax Administration) amended Annex III of Superintendence Resolution No. 014-2018/SUNAT to more strictly regulate the employment of methods other than the Comparable Uncontrolled Price (CUP) in export and import transactions involving goods covered by Annex 2 of the Income Tax Law Regulations.
Key Requirements of the New Technical Support
This amendment requires taxpayers who employ a method other than the CUP to file the technical support in the Local Report (Virtual Form No. 3560) containing:
- Economic, financial, and technical reasons supporting the inadequacy of the CUP to reflect the reality of the transaction.
- Quantification of the effects generated by the distorted application of the CUP.
- Supporting documentation, such as appraisals, valuations, technical reports, or others.
- Function, asset, and risk (FAR) analysis justifying the alternative method.
- Comparison with independent third-party transactions, demonstrating that comparables do not apply or are unreliable.
In addition, all this information must be kept and available to the SUNAT when requested.
Implications for Taxpayers
This amendment intends to align local practice with international Transfer Pricing standards and prevent the arbitrary use of the so-called “Sixth Method.” Therefore, companies operating with goods difficult to compare should rigorously evaluate the need for alternative methods, documenting their technical and economic analysis in detail.
Recommendations for Companies
Taxpayers should review their foreign trade operations and identify whether they apply methods other than the CUP. If so, they must accurately document their methodological choice and update their Local Reports according to the new requirement.
Does your company apply the Sixth Method? At TPC Group, we have Transfer Pricing specialists at your disposal to support your methodology technically and legally before the SUNAT. Contact us to ensure your tax compliance.
Source: Superintendency Resolution No. 000123-2024/SUNAT published on June 14, 2024, in the Official Gazette El Peruano.