29 September 2016 Costa Rica issues transfer pricing information return regulations Taxpayers should ensure that they will be able to comply with the new transfer pricing regulations and the electronic filing requirement for transfer pricing information returns. Failure to comply could result in penalties. On September 13, 2016, the Costa Rican Tax Authority (the DGT) issued transfer pricing information return regulations (N DGT-R-44-2016) (the Regulations), which were previously mentioned in Article 8 of Executive Decree Nr. 37898-H, published September 13, 2013 (the Executive Decree). In accordance with Article 8 of the Executive Decree, Article 2 of the Regulations requires the following taxpayers to file a transfer pricing information return: (1) all "large national taxpayers" and "large regional companies" (both defined by Resolution DGT-09-2008, published in the Official Gazette No120 on June, 23, 2008), engaged in domestic or cross-border transactions with related companies, and (2) all companies operating under the Free Trade Zone regime established by Law 7210 of November 23, 1990, and its amendments. Taxpayers must file the transfer pricing information return before the last business day of June of each year and must include information regarding all related-party transactions during the fiscal period covered in the taxpayer's last tax return (the corporate income tax return in Costa Rica is due two months and 15 days after the close of the taxpayer's fiscal year). For fiscal years 2015 and 2016, the transfer pricing information returns must be filed simultaneously no later than the last business day of June 2017. At least three months before the filing due date, the DGT will make available the technical resources necessary to electronically submit the transfer pricing information return. It will also make technical resources available for taxpayers without internet access. The transfer pricing information return must include information identifying the taxpayer and its related companies, as well as details of the related-party transactions, the transfer pricing method used, and profit-level indicators or prices, among other information. The transfer pricing information return must be signed by the taxpayer's legal representative. Taxpayers that fail to timely and correctly submit their transfer pricing information return may be subject to penalties. The penalties will be determined under Article 83 of Costa Rica's Tax Code (the CNPT1).
Document ID: 2016-1650 | |||||||||||||||||||||||||||
