Transfer pricing Peru: Higher audit risk for companies without an APA agreement

Peruvian tax authorities have significantly stepped up their enforcement of transfer pricing (TP), particularly in the scrutiny of intercompany services and related‑party transactions. Where advance pricing agreements (APAs) with SUNAT remain under negotiation or pending approval, companies operating in Peru must exercise heightened vigilance, recommend the Ecovis consultants.

Audit trends and regulatory focus

Recent global tax commentary highlights that the authorities in Peru, Argentina, Colombia, Ecuador, Uruguay, and Venezuela are increasingly targeting payments for intercompany services, demanding robust economic justification and compliance with arm’s‑length principles.

In Peru, the tightening of transfer pricing rules via legislative changes (e.g., Legislative Decrees 1662 and 1663, effective since 1 January 2025) now permits the application of bilateral APAs and introduces new valuation methodologies such as discounted cash flow (DCF), multiples, and equity participation models.

Implications for companies without APAs

• Intensified audits. SUNAT is actively challenging intercompany service arrangements, especially where documentation, benefit to the Peruvian party, or margin assumptions appear weak or unsupported.
• Higher risk of adjustments or penalties. In cases of non-compliance, SUNAT has imposed a 5% additional tax rate on deemed dividends, which was recently upheld by a tax court decision relating to insufficient transfer pricing documentation.

Crucially, where APAs are not in place or still under negotiation, companies lack the protective certainty that agreed methods will withstand audit scrutiny, increasing their exposure to adjustments and legal disputes.

We will discuss with you how you can manage TP compliance in your company and reduce the audit risk.

Octavio Salazar Mesías, Partner – Tax & Legal Department, ECOVIS Peru, Lima, Peru

Proactive measures recommended

To mitigate emerging risks, Peruvian-based multinational enterprises should consider:

1. Accelerating APA finalisation, whether unilateral, bilateral or multilateral, to lock in transfer pricing methodologies with SUNAT in advance of full tax audit reviews. The new framework allows retroactive coverage for bilateral APAs, which enhances certainty for previous fiscal years.
2. Strengthening contemporaneous documentation, including local and master files, justification of intercompany services evidence, benefit assessments, allocation criteria, and margin support consistent with OECD standards and Peruvian regulations.
3. Conducting internal diagnostics, identifying anomalies or gaps ahead of a potential audit – particularly on pricing methodologies, service allocation, and related-party transaction justification.

As SUNAT intensifies fiscal scrutiny and pending APAs remain unresolved, now is the time for companies to reinforce their transfer pricing defences and consult with experts to examine how to manage their TP compliance and reduce audit risk. This includes:

• Diagnostic reviews of existing TP practices and documentation
• APA structuring, negotiation, follow‑up and retroactive application strategy
• Response plans to audit notifications, including documentation defence and risk assessment
• Optimisation of intra‑group agreements and pricing policies aligned with compliance and economic substance

For further information please contact:

Octavio Salazar Mesías, Partner – Tax & Legal Department, ECOVIS Peru, Lima, Peru
Email: octavio.salazar@ecovis.com.pe