1. Transfer Pricing Statement Due Date
The Transfer Pricing Statement must be filed in June of the year following the closing of the fiscal year, being due within six months following the closing of the fiscal year for those taxpayers whose fiscal year closing is different from the calendar year.
2. Who must file the Transfer Pricing Studies?
The transfer pricing legislation in Venezuela, article 109 of the Income Tax Law, states that those taxpayers who carry out transactions with related parties are obliged to determine their income or expenses based on prices agreed upon by independent parties in comparable transactions.
3. What documents must I file?
The Tax Administration must be informed of the related transactions performed in a given fiscal year through an “Information Statement of Transactions Performed with Related Parties.”
4. How may I be considered a “Related Party”?
According to Article 114 of the Law, the following are considered related parties:
- Any company that directly or indirectly participates in management, control, or capital of another company.
- Likewise, when both companies have the same persons participating directly or indirectly in management, control, or capital of both companies.
5. When should I start the drafting of the Transfer Pricing Studies?
The Income Tax Law does not establish a date for drafting the transfer pricing study. However, the information-related party statement must already have such document, so the taxpayer should have it prior to the filing of such statement.
6. What happens if the requested documentation is not filed?
The non-filing, or filing with a delay exceeding one year, of an affidavit will be sanctioned with a fine amounting to one hundred and fifty (150) times the official exchange rate of the currency of highest value, published by the Central Bank of Venezuela.
On the other hand, if the statement is filed incompletely, the penalty shall be a fine equivalent to one hundred times the official exchange rate of the currency of the highest value, published by the Central Bank of Venezuela.
Source: TPC Group 08/06/21