Resolution 115 states the technical study must be submitted in PDF format, while working papers on development of the transfer pricing analysis must be submitted in spreadsheet format (.xls, .xlsx, .ods) which permits verification of calculations. Taxpayers must also submit a ‘qualitative and quantitative summary of operations with related parties’ – including general information about the taxpayer, identification of the related parties with which the taxpaying entity entered transactions, detailed information on these transactions, and the transfer pricing methodology applied to them. Reports must be submitted digitally using the Marangatu system and must be ratified by ‘authorised transfer pricing professionals’ through the same system.
The deadline for presentation of both the report and the working papers, for taxpayers whose fiscal year closes in December, is July of the following year. However, the deadline for data covering the 2021 fiscal year has been extended to 31 October 2022. Taxpayers may also submit information disproving a presumptive link with residents abroad – (for those taxpayers whose fiscal year closes in December) data must be submitted in PDF format by March of the following year. That said, the required information of the fiscal year 2021 has an exceptional deadline of May 2022.
It’s important to note that submission of the technical transfer pricing study and working papers, and quantitative/qualitative studies are considered sworn statements under the law. The Resolution also states penalties for non-compliance will range from US$140 to the maximum level fine, approximately US$220.
For further information on this or any other aspect of transfer pricing in Paraguay, contact our team of experts.
Information elaborated with the collaboration of Amaral & Asociados.