Transfer Pricing Considerations for filing the Income Tax Affidavit
Transfer Pricing Considerations for filing the Income Tax AffidavitTegucigalpa, April 20, 2023
All Taxpayers who have a normal fiscal period must submit their Annual Income Tax Declaration no later than April 30, for the correct compliance with this obligation it is of the utmost importance that the Taxpayer take into consideration several elements, among which are: Prepare your Financial Statements closed as of December 31, 2022, identify non-deductible expenses that will be reported in the Income Tax Declaration, have a documentary record of all Income Tax withholdings that your clients have made, Registration of payments on account made, and of course it is of the utmost importance that if the taxpayer carries out transactions with its related parties, he must include in a discriminated way in the corresponding boxes of the Income Tax Declaration the information of the operations carried out with its related parties.
Section B of the Income Tax Declaration
The Income Tax Declaration has in its section B the section that summarizes the amount of operations carried out with related parties, separating them by: asset, liability, income and expense operations, carried out with: local, foreign and/or foreign related parties. havens and preferential tax regimes.
These boxes will be completed with the data reported in section C corresponding to the Statement of Financial Position in the internal boxes corresponding to Accounts Receivable with Related Parties and Accounts Payable with Related Parties and with the data reported in the Statement of Profit and Loss.
Which Taxpayers must complete section B of the Income Tax Declaration?
All Taxpayers who carry out transactions with related parties regardless of whether or not they are required to submit the Transfer Pricing Declaration.
In other words, the taxpayer who has carried out operations with its related parties must report said operations in the corresponding boxes in the Income Tax Declaration, however in the case of taxpayers who do have the obligation to present the Declaration of Prices of Transfer must take care that the data provided in both declarations correspond and that the existing differences have a valid and acceptable explanation according to the particularities of each transaction, such as: the amount reported in a financing operation in the Declaration of Transfer Prices may be higher than the amount declared in the Income Tax Declaration, because the Transfer Prices Declaration starts with the total value of the debt and the balance payable is placed in the Income Tax Declaration that is recorded in the Statement of Financial Position.
Declaration of Transfer Pricing Adjustments
The Taxpayers subject to the presentation of the Transfer Pricing Declaration must carry out a study in order to analyze the operations carried out with their related parties and determine if they were agreed at market value, if from this analysis it is determined that said operations were carried out without complying with the Arm’s Length principle and that as a result of this there was tax damage, you must then report this adjustment in the income box for transfer pricing adjustment and make the payment of the adjusted tax in the Tax return sore Rent.
For the correct presentation of tax returns, the information must always be prepared sufficiently in advance and in compliance with current regulations.
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