The Sixth Transfer Pricing Method

November 13, 2023


The Transfer Pricing environment is complex, and finding the right methodology to value related-party transactions is crucial. One thereof is the “Sixth Method,” historically considered by several countries, especially for raw material transactions. This is a variant of the Comparable Uncontrolled Price (CUP) method, one of the traditional methodologies, especially relevant for the export and import of goods with known quotations. Herein, we will examine this CUP variant due to the regulating change in the Peruvian Context.

Implementation of the Sixth Method – OECD Guidelines

The implementation of the Sixth Transfer Pricing Method, based on the OECD standards, covers export and import transactions or both. This method is employed for establishing competitive prices, especially in transactions of natural resources or goods with known prices in transparent markets. Its implementation varies according to the country, considering the relationship of the related parties and the presence of international intermediaries. The highest price between the market quotation and that one with an intermediary are assessed. The acceptance of comparability adjustments and exceptions regarding the economic substance of the intermediary differ between countries.

Updating in the Peruvian Context

In the Peruvian context, Supreme Decree No. 327-2022-EF proposes amendments in the regulations applicable to export or import transactions of goods with known quotations in international markets. Taxpayers must file affidavits before SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria – National Superintendence of Customs and Tax Administration), detailing the terms agreed upon in contracts containing key information as counterpart identification, contract features, date of subscription, effectiveness, date of quotation, type of good, among other relevant data. In the case of variations in the information, it must contain a modifying communication detailing aspects such as international terms of trade and port of discharge, among others.

Support for the Implementation of a Different Method

If a method different from the CUP one is employed, the taxpayer must justify it through theoretical support. This document must explain the factors (different from the CUP), detailing the lack of comparables or the qualitative and quantitative effects resulting in the loss of reliability when implementing the traditional method.

Advantages and Challenges

The Sixth Method offers important advantages, such as simplicity and certainty in the Transfer Pricing determination. It facilitates efficient tax collection due to the basis of verifiable market quotations.

Conversely, it also brings challenges, given that it is not a traditionally recognized method and may be rejected by the counterparty in the transaction. In addition, it does not consider the specific economic circumstances of the transaction, which may result in overcompensation or double taxation.


The Sixth Transfer Pricing Method is a CUP variant focused on export and import transactions of goods with a quotation known in international markets. Although it offers simplicity advantages and tax efficiency, it also poses recognition challenges and accuracy in the implementation of the Arm’s Length Principle. Choosing the accurate Transfer Pricing method is important to ensure all related-company transactions comply with the tax regulations and avoid double taxation issues or inappropriate offsets.