Form 930 as support of the Local Report in Panama
Panama City, April 24, 2023
Form 930 is a form used in Panama to declare compliance with the transfer pricing regulations established by the General Directorate of Revenue (DGI). Form 930 requires the presentation of a Transfer Pricing Technical Study or Local Report at the request of the DGI. The Local Report provides detailed evidence of the prices used for intercompany transactions and the necessary arguments for the use of a certain analysis methodology. This Local Report is important because it allows the DGI to evaluate the legitimacy of the results in the transfer pricing operations used by the company.
The Local Report is also important because it allows the company to demonstrate that it has taken reasonable steps to ensure that its transfer pricing agreements comply with local regulations. In addition, the Local Report helps to ensure that the company obtains the maximum value from its international operations, maximizing its benefits and minimizing its costs.
In conclusion, the Local Report is an important component of the Form 930 return in the jurisdiction of Panama, as it provides a comprehensive analysis of transfer pricing between related parties. Helps tax authorities to ensure that declared transfer prices comply with the arm’s length principle, in order to prevent tax evasion. In addition, it provides an explanation of the methodology used to set transfer prices, which helps tax authorities understand the underlying economics of transfer pricing between related parties. Therefore, it is important to develop a Local Transfer Pricing Report that argumentatively supports the declaration of Form 930 in the jurisdiction of Panama.
For more information, contact us at rhurtado@tpconsulting.com or by phone (507) 203-6771 | (507) 203-6770 | (507) 221-8664.
