By Resolution NAC-DGERCGC23-00000025 issued on September 13, 2023, and published in the Second Supplement to the Official Gazette No. 396 of September 14, 2023, the General Director of the Internal Revenue Service (“SRI”) amended Resolutions NAC-DGERCGC15-00000455 and NAC-DGERCGC16-00000532 which regulate the filing of the Annex of Related Party Transactions and the Comprehensive Transfer Pricing Report.
- Amendments to Resolution NAC-DGERCGC15-00000455
Taxpayers obliged to apply the transfer pricing regime and that within the same fiscal year have carried out transactions with related parties for an amount exceeding US$10,000,000 (previously US$15,000,000) must file the Comprehensive Transfer Pricing Report.
Regarding the operations included or not in the amount of operations with related parties, the following amendments were made:
- Income derived from agricultural activities subject to a single income tax is excluded, as well as the assets, liabilities, or expenses of the taxpayer attributable to the activity generating such income.
- In transactions between local related parties, those transactions carried out by the taxpayer that made the prior valuation consultation are excluded from the amount. The taxpayer with which such transactions were carried out may not exclude then automatically; therefore, it would have to analyze whether the transactions are excluded for a different reason or whether they should be included in the amount of related party transactions.
- Liability transactions are excluded from the amount, except for any loans obtained in the fiscal period being reported.
- Transactions with local related parties are included when the taxpayer has applied any income tax exemption or a partial or total reduction of the income tax rate.
A new Comprehensive Transfer Pricing Report may not be filed for tax years in respect of which the tax administration exercises or has exercised its assessment capability.
- Amendments Resolution NAC-DGERCGC16-00000532
The use of financial information corresponding to the fiscal year prior to the one analyzed is allowed when:
- There is no information available for the fiscal year under analysis with respect to one or some of the comparable transactions,
- The accounting closing date of the previous fiscal year is after June 30, and
It is demonstrated that the relevant conditions in both periods did not change.
