In order to comply with this obligation, the Tax Authority grants a maximum period of 20 working days after the notification.
1. Transfer Pricing Study Preparation
The corresponding documents and the Income Tax Affidavit should be simultaneously prepared, given that the Transfer Pricing Study containing sufficient information and analysis to demonstrate and justify the correct pricing among related parties must be parallel filed with the mentioned document.
2. Documentation Filing
Only the taxpayer should file the supporting documentation or Transfer Pricing study to the Tax Authority when the latter expressly requires it in writing. In order to comply with this obligation, the Tax Authority grants a maximum period of 20 working days after the notification.
3. What Must Be Filed?
The Guatemalan norm establishes two types of formal obligations to be observed by those taxpayers performing related-party transactions, which will be;
- Informative Statement (Transfer Pricing Study)
- Supporting Documentation
4. Entity Obligated to File the Transfer Pricing Study
The obligation to prepare the Transfer Pricing Study in Guatemala does not discriminate against taxpayers by their income or transactions, nor does it exempt any from filing the Annex of Related Parties (Transfer Pricing Affidavit), only if required to have performed related party transactions abroad during the current exercise.
5. Failure to File the Documentation Once Requested
According to numeral 13 of Article 94 of the referred Code, the failure to file the established reports to the Tax Administration is sanctioned with a fine of 5,000.00 quetzals the first time and 10,000.00 quetzals the second. Furthermore, in case of non-compliance more than twice, the fine will be 10,000.00 quetzals plus 1% of the gross income obtained during the last month in which the income was declared.
Source: Superintendencia de Administración Tributaria (SAT)
