NewsFlash September 2023

Upcoming Transfer Pricing deadlines in the Americas

  • Bolivia: October 31
    • 601 Sworn Informative Statement and Local Report for agribusiness companies.
  • Dominican Republic: October 31
    • Master Report.
    • Local Report.
  • Peru: October 16 to 24
    • Master Report.
    • Country-by-Country Report.
    • Notification of Country-by-Country Report. When the parent company of the multinational company designates a parent representative for the filing of the Country-by-Country Report.


Brazil publishes new Transfer Pricing Rules

On September 29, 2023, the Brazilian Official Gazette (DOU) published Normative Instruction RFB 2.161/23, which regulates Brazil’s new transfer pricing rules as set forth in Law 14.596/23.
Important: the Normative Instruction extends the deadline for taxpayers to elect early adoption of the OECD TP guidelines to December 31, 2023. This means that MNEs operating in Brazil still have time to analyze the optimal transfer pricing strategy option for FY 2023. Our expert team is here to help you during this crucial transition period.

Read the full Brazilian Official Gazette here (and find the Normative Instruction on page 107).


Ecuador: amounts required for the filing of the Transfer Pricing Report

The Ecuadorean tax authorities, through Resolution No. NAC-DGERCGC23-00000025, implemented several significant modifications regarding transfer pricing.

Taxpayers liable for income tax who are not exempt from complying with the transfer pricing regime and who in the same tax period have carried out transactions with related parties for an accumulated amount exceeding three million U.S. dollars (USD 3,000,000), must file the Annex of Transactions with Related Parties. When such amount exceeds ten million U.S. dollars (USD 10,000,000), these taxpayers must file, in addition to the Annex of Related Party Transactions, the Comprehensive Transfer Pricing Report.

You can access the complete document of the resolution here.


Dominican Republic: Special Transitory Treatment for the Audit, Management and Recovery of Tax Debts with the State 

Through Law 51-23, the Directorate General of Internal Taxes (DGII) establishes a special treatment for declaring prescriptions, which is a mechanism that allows for eliminating all tax debts for periods 2015 and prior, provided that the established requirements are met, including:

  • Income Tax.
  • Tax on Transfers of Industrialized Goods and Services.
  • Selective Consumption Tax.
  • Tax on Assets.
  • Tax on Real Estate Patrimony.
  • Taxes on lottery, betting, and sporting banks.

To consult the law, click here.


Peru: progress in the process of joining the OECD

In 2012, Peru made the formal request for its incorporation as a member of the Organization for Economic Co-operation and Development (OECD), and later received the invitation to start the accession process in 2022. Between September 26 and 28, 2023, the OECD Secretary General visited the country to present the economic study carried out as part of the first evaluation under this process.

To read the publication, click here.


OECD releases compilation of revised Country-by-Country Reports

On September 25, 2023, the OECD published its latest compendium of revised Country by Country (CbC) reports under the BEPS Action 13 initiative.

This sixth report covers a total of 136 jurisdictions. For each jurisdiction the review covers the national legal and administrative framework, the information exchange framework, and the measures implemented to ensure the confidentiality and proper use of CbC reports.

This compilation is a valuable source of information for taxpayers seeking to understand and comply with CbC reporting requirements in the current context.

To access the full report, click here.


OECD/G20: The Multilateral Convention to Implement Amount A of Pillar One

The OECD/G20 Inclusive Framework has introduced “The Multilateral Convention to Implement Amount A of Pillar One”, designed to tackle the tax challenges brought about by globalization and digitalization. This document is the result of extensive collaboration involving over 140 countries. The key points of this document include:

  • Establishing a framework for the reallocation of taxing rights to market jurisdictions for highly profitable multinational enterprises, regardless of their physical presence.
  • Ensuring the relief from double taxation due to this reallocation.
  • Providing a mechanism for dispute prevention and resolution concerning tax certainty for qualifying multinational enterprises.
  • Repealing and coordinating the preferential treatment of digital service taxes and similar measures to maintain stability in the international tax system.
  • Incorporating design features to address unique circumstances of developing economies.

For detailed information about the Multilateral Convention, please refer to the overview PDF.

Read the full document here.

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