Home » News No. 001-2023-PE | Transactional Net Margin

News No. 001-2023-PE | Transactional Net Margin

Transfer Pricing Precedent regarding the application of the Transactional Net Margin method [RTF 06526-1-2021]

Lima, August 22, 2023

The Tax Court, through TF Resolution No. 06526-1-2021, established a relevant precedent regarding transfer pricing, relating to the use of multi-year information of the company analyzed and the implementation of comparability adjustments due to the adoption of IFRS; both for the company analyzed and to establish comparability criteria applicable to the analysis by the Transactional Net Margin method.

Mainly, it points out that the use of multi-year financial information should be applied when said information can help to better understand the factors that could influence the company’s operation. It also points out that for the choice of comparable companies in the analysis using the Global Transactional Net Margin, it must be taken into account that these comparable companies have adapted the same conditions as the one analyzed.

According to the RTF, the company analyzed used multi-year information without being supported by any factor that justified its applicability. In addition, it made accounting adjustments due to the adoption of International Financial Reporting Standards (IFRS), regarding which the Court noted:

“From the above (,) it is established that the relevance of the comparability adjustment proposed by the appellant (exclusion of the accounting adjustment due to the adoption of IFRS) for the purposes of the transfer pricing analysis is not supported, so the rejection of the “Administration to said adjustment is regulated by Law.” (*)

(*) Page 16 of 19, third paragraph

Due to the above, the Court confirmed SUNAT‘s position that rejected two adjustments made by the company, which caused the Income Tax tax base to increase by the amount of almost US$ 15 million, compared to fiscal year 2013.

Based on the above precedent, it is recommended to be clear about the scenarios for the use of multi-year information and the comparability criteria for the search and selection of comparable companies, such as their accounting principles, with the objective of presenting uniformity in the comparison. of financial information.

You can obtain the resolution in question at the following link: http://bit.ly/3KSVhh0

Contact us at asistente.gerencia@tpconsulting.com or by phone (01) 480 0170.

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