At the end of 2018, Peru signed the Multilateral Competent Authority Agreement (MCAA CbC) which regulates the exchange of Country-by-Country reports. Thus, Peru has committed to send CbC reports to 44 countries until January 31st, 2019. However, Peru has so far only received Portugal`s confirmation of submitting their CbC reports.
Nevertheless, it can be expected that other exchange relations will be activated soon because the prolonged deadline for submitting CbC reports for the fiscal year 2017 ends Mid-March of 2019. The idea behind prolonging the deadline was to give the Peruvian officials sufficient time for signing and activating the MCAA CbC.
By now though, it remains unclear if all activations can be carried out until the end of the deadline. If that is not the case, subsidiaries of MNEs have to continue submitting their CbC reports in Peru. Additionally, an analysis will be reuired for which fiscal years exchange relations are in place (since 2017/18 or only starting in 2019).
Tax authorities are expected to soon publish more details and recommendations on how to handle the reporting issue.
These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!