Peru: Local Report for Transfer Prices

The Local Report is an affidavit that must be presented to the Peruvian tax authority SUNAT for transfer pricing. But what exactly are the requirements of the local report, who needs to submit it and what penalties are likely to be imposed in case of non-compliance?

 

What is the Local Report?

The annual Local Report must be produced as an affidavit by companies, provided that they conduct transactions with related parties, meeting certain thresholds. The report must be submitted online via the Local Report Informative Sworn Statement (3560).

 

Who has to submit the Local Report?

The local report must be submitted by taxpayers who have an annual income of more than 2,300 UIT and carry out transactions that fall within the scope of transfer pricing for amounts of 100 UIT or more.

 

Who is exempt from submitting the Local Report?

The following taxpayers are not required to submit the local report unless they receive revenue from third sources:

 

  • Taxpayers who are registered as natural persons
  • undivided goods
  • marital communities
  • Companies that promote the economy of the state
  • State enterprises that are part of the regional and local authorities

 

Which penalties can be imposed?

Those who fail to file the local report with the Peruvian tax authority SUNAT on time must expect a fine of 0.6% of the net income. The maximum penalty is 25 UIT.

 

DIY or outsource the Report?

The annual preparation of the local report requires specific expertise and the respective human resources. Particularly with regard to the preparation of the report from the ERP system, expert advice can make the difference. This will help you avoid both high fines and problems with the tax authorities in Peru.

 

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!