Upcoming Deadlines for Master File and Country by Country Reports for Fiscal Year 2023 in Peru
Compliance with Transfer Pricing obligations is fundamental for multinational companies, thus mainly requiring the reporting of the Master File and the Country by Country Report. In Peru, these Informative Affidavits are mandatory for taxpayers carrying out intercompany transactions and filed to the SUNAT (Superintendencia Nacional de Aduanas y la Administración Tributaria – National Superintendence of Customs and Tax Administration) on the stipulated dates. Below, we will address the details and important deadlines for the fiscal year 2023.
Entities Obliged to File the Master File
According to current regulations, taxpayer members of a group must file the Master File when in the taxable year to which the statement corresponds:
- The accrued income must have exceeded 20,000 UIT (Unidad Impositiva Tributaria – Tax Units).
- They had carried out transactions within the application scope of the Transfer Pricing rules, whose number of operations is equal to or greater than 400 UIT.
The Master File provides an overview of the multinational group of the member company, including its organizational structure, the nature of its operations, and its Transfer Pricing policy.
Country by Country Report: Definition and Entity Obliged Thereto
Whenever the income accrued in the taxable year before the one to which the statement corresponds, according to the consolidated financial statements to be prepared by the parent company of the multinational group, is greater than or equal to 2’700,000,000 soles, the following must file the statement:
- The locally domiciled parent company of the multinational group.
- The locally domiciled taxpayer member of the multinational group when, although the parent company is not domiciled in Peru, the following is verified:
- It would have been designated by the group as parent company representative.
- One or more of the conditions outlined in paragraphs 1 to 3 of subsection b) of Article 116 of the Income Tax Law Regulations are met.
If several locally domiciled taxpayers are group members, the group designates the person responsible for filing the statement.
Filing Due Dates
For the fiscal year 2023, the due dates for filing these statements vary according to the last digit of the taxpayer’s RUC (Registro Único de Contribuyente – Taxpayer Identification Number). The due dates are as follows:
- October 16 to 24, 2024, depending on the last RUC digit.
Companies must keep updated with these dates to avoid penalties and comply with tax obligations.
Non-Compliance Penalties
Failure to comply with the filing of the Master File or Country by Country Report within the established deadlines may result in significant fines. The penalty for failure to file is 0.6% of net income, with a minimum of 10% of the UIT and a maximum of 25 UIT. Conversely, this infraction is subject to the 100% graduality regime. Therefore, there will be no fine if the company files the reports before being notified by the SUNAT.
Conclusion
Compliance with the filing of the Master File and the Country-by-Country Report is essential to avoid penalties and ensure that intercompany transactions are under Transfer Pricing regulations in Peru. Due dates are specific, and companies should prepare all necessary documentation to avoid infringements.
Comply with your Transfer Pricing obligations!
At TPC Group, we have Transfer Pricing experts who will assist you in preparing and filing the Master File and Country by Country Report correctly.
Contact us for more information!
Source: SUNAT, "Transfer Pricing Regulations 2023".
