By Carlos Vargas Alencastre & Franz Salazar Anccasi, TPC Group, Peru
Peru´s tax administration on 4 June issued new guidance on the indirect transfer rules, which levy tax on the transfer of shares in a non-Peruvian company that directly or indirectly owns shares in a Peruvian company.
The new guidance is designed to help foreign holding companies calculate whether they have a fifty percent or greater ownership interest in a Peruvian entity in accordance with the last balance-sheet. This ownership interest is required for the indirect transfer rules to apply.
The new guidance, Informe No. 046-2019-SUNAT/7T0000, follows paragraph e) of Article 10 of the Peruvian income Tax act and other related statutes, concluding that if the Peruvian entity is not listed on any stock exchange or other regulated market, its fair-market value will be the value registered in its last audited financial statement.
In that context, for the purpose of determining the fifty percent ownership in a Peruvian entity and therefore qualifying as an indirect transfer of shares, the fair-market value will be the value accounted in the last audited financial statements, in essence, the statement closed on December 31.
In our opinion, the new Peruvian tax administration guidance clarifies the indirect transfer of share provisions.
Carlos Vargas Alencastre
Carlos Vargas Alencastre is a public accountant and auditor based in Lima, Peru. He is managing partner of TPC Group in Latin America.
Vargas Alencastre has significant international tax and transfer pricing experience. He has practiced transfer pricing for over twenty years, advising clients on transfer pricing controversies and valuation matters in LATAM, the United States, and Spain.
He has also acquired expertise in global expansion projects for multinational enterprises that have developed and maintained businesses in foreign markets (including advice on international tax matters and advisory).
Vargas Alencastre is a frequent speaker at tax conferences, addressing transfer pricing and international tax issues such as information exchange among tax authorities. He holds an accounting degree from Universidad Inca Garcilaso de la Vega.
Latest posts by Carlos Vargas Alencastre (see all)
TP Business Consulting SAC
Av. Manuel Olguín 501
Santiago de Surco
Lima 33 - Perú
Phone: +51 1 6279787
Fax: +51 1 4364612
Email: [email protected]
Franz Salazar Anccasi
Franz Salazar Anccasi is a tax and legal senior with TPC Group, Peru. Through his work at TPC Group, Franz assists clients in the field of international tax law and transfer pricing, focusing on tax treaties and their impact on cross-border transactions.
Franz is a qualified lawyer in Peru since 2013. Before joining TPC Group, Franz worked as a tax senior at an international consulting firm in Peru. He holds a Master of Laws (LLM) in International Taxation from the University of Florida.
Franz is a frequent speaker at tax seminars and workshops for clients and the public. Franz's interests lie in international taxation in the mining and financial service sectors.
Franz can be reached at [email protected]
Latest posts by Franz Salazar Anccasi (see all)
TP Business Consulting SAC
Av. Manuel Olguín 501
Santiago de Surco
Lima 33 - Perú
Phone: +51 1 6279787
Fax: +51 1 4364612
Email: [email protected]
Be the first to comment