2.3. COUNTRY-BY-COUNTRY REPORT (CBC)

    a) Taxpayers required to file the Country-by-Country Report 

The parent company domiciled in the country of a multinational group must file the Informative Declaration - Country-by-Country Report, provided that the income, according to the consolidated financial statements it prepares, accrued in the taxable year prior to the one to which the statement corresponds, is greater than or equal to two thousand seven hundred million and 00/100 soles (S/ 2 700 000 000.00). 

The Country-by-Country Report must also be filed by the taxpayer domiciled in the country that is a member of a multinational group provided that the income, according to the consolidated financial statements that the non-domiciled parent company of the multinational group is required to prepare, accrued in the previous taxable year, is greater than or equal to two thousand seven hundred million and 00/100 soles (S/ 2 700 000 000. 00), when any of the following conditions occur: 1) The non-domiciled parent company of the multinational group is not required to file the Country-by-Country Report information return in its jurisdiction of domicile or residence; 2) At the date of expiration of the deadline for filing the Country-by-Country Report information return, the jurisdiction of domicile or residence of the parent company has an international treaty or decision of the Commission of the Andean Community in force with Peru, which authorizes the exchange of tax information, but does not have an agreement between competent authorities for the exchange of the Country-by-Country Report in force to which Peru is a party; 3) In the existence of such international treaty, there is a systematic noncompliance with the exchange of tax information that has been communicated by SUNAT to the domiciled taxpayer; 4) The domiciled taxpayer has been designated by the multinational group as parent representative and communicates such designation to the Tax Authority (SUNAT).

The taxpayer domiciled in the country that is a member of a multinational group is not required to file the Country-by-Country Report if the non-domiciled parent company is not required to file such report in its jurisdiction of domicile or residence because the referred income is less than seven hundred and fifty million euros (€ 750 000 000) or the equivalent amount established in its local currency as threshold for the purposes of the obligation to file the Country-by-Country Report in such jurisdiction.

When several taxpayers domiciled in the country are members of the same multinational group and any or several of the conditions are met, the multinational group will designate the domiciled taxpayer responsible for filing the return and will inform such designation to SUNAT.

In case this is not complied with, SUNAT may designate the domiciled taxpayer to file the informative declaration. 

https://www.sunat.gob.pe/legislacion/renta/regla/cap19.pdf

    b) Exceptions. 

The taxpayer that is in one or more of the cases mentioned above is not required to file the Country-by-Country Report for a given taxable year, if on the date of expiration of the deadline for filing such return or before, the multinational group has filed such report through a parent company representative, provided that for such year the jurisdiction of domicile or residence of the latter: (i) requires the filing of the Country-by-Country Report; (ii) does not have an agreement between competent authorities in force with Peru on the date of expiration of the deadline for filing such return; (iii) does not have an agreement between competent authorities in force with Peru on the date of expiration of the deadline for filing such return: (i) requires the filing of the Country-by-Country Report; (ii) has an agreement between competent authorities in force with Peru as of the date of expiration of the deadline for filing the referred return; (iii) has not notified SUNAT that a systematic noncompliance has occurred; (iv) exchanges the Country-by-Country Report; and (v) has been informed by the member of the group designated as representative parent of its condition.

For this purpose, the domiciled taxpayer must communicate the designation of the parent representative by the multinational group to SUNAT.

       c) Content of the Country-by-Country Report 

The Country-by-Country Report must contain the following minimum information:

1. General information related to the amount of income, profit or loss (before taxes), income tax paid and accrued, declared capital, undistributed results, number of workers and tangible assets other than cash or cash equivalents, in relation to each jurisdiction in which the multinational group operates. 

2. Identification of each member of the multinational group, indicating the jurisdiction of domicile or residence of each one of them and the jurisdiction under whose legislation it has been incorporated, if different from the jurisdiction of domicile or residence, as well as the nature of the principal economic activity or activities carried out.

 3. Any additional information or explanation that may be necessary or that may facilitate the understanding of the information contained in the Country-by-Country Report. 

             d) Terminology

1. Group: A group of persons, companies or entities linked by ownership or control relationships, such that it is required to prepare consolidated financial statements in accordance with generally accepted accounting principles or would be required to do so if the shares, participations or other documents representing the equity of such persons, companies or entities were traded in centralized trading mechanisms. 

2. Multinational group: A group consisting of one or more persons, companies or entities domiciled in the country and one or more persons, companies or entities not domiciled in the country, or consisting of a person, company or entity domiciled for tax purposes in one jurisdiction and taxed in another jurisdiction for activities carried out through a permanent establishment. 

3. Systematic non-compliance: It is the suspension of the exchange of information for reasons other than those provided for in an agreement between competent authorities in force, or the repeated failure of a jurisdiction with which there is an agreement between competent authorities in force, to provide the Country-by-Country Report, despite having the same.

4. Group member: A person, company or entity of a group that meets any of the following conditions: 

(i) Is included in the consolidated financial statements of the group for financial reporting purposes, or that would be included if the shares, units or other documents representing its equity were traded on centralized trading facilities.

(ii) Is excluded from the consolidated financial statements of the group solely on the grounds of size or significance.    

(iii) Is a permanent establishment of a person, company or entity of the group, in a jurisdiction of domicile or residence other than that of such person, company or entity referred to in (i) or (ii) above, provided that such person, company or entity prepares, for such permanent establishment, separate financial statements for financial, regulatory, tax or internal management control reporting purpose n. 

5. Parent Company: The member of a group that concurrently complies with: (i) Having direct or indirect control over one or more members of the group, such that it has the obligation to prepare consolidated financial statements in accordance with generally accepted accounting principles in its jurisdiction of domicile or residence or would have such obligation if its shares, participations or other documents representing its equity were negotiated in centralized negotiation mechanisms in its jurisdiction of domicile or residence; and (ii) There must not be another member of the group that exercises similar control over it.

6. Parent company representative: The member of a multinational group that has been appointed by such group as the sole representative of the parent company in order to file the Country-by-Country Report on behalf of the multinational group, in the jurisdiction of domicile or residence of such member, provided that one or more of the conditions set forth above are met.

7. Tax Unit (UIT): It is the tax unit corresponding to the fiscal year for which the informative declarations are filed.

https://www.sunat.gob.pe/legislacion/renta/regla/cap19.pdf

Legal basis: Subsection a) of article 116° of the LIR Regulations.

OECD Evaluation Approval Statement:

CbC-Report-Frequently Asked Questions:

e) Means of submitting the declaration Country by Country Report

By means of Superintendence Resolution No. 188-2019/SUNAT, the IR - AEOI System is approved, which must be used as of October 1, 2019, for the submission of the Country-by-Country Report declaration, regardless of the period to which the declaration corresponds, including for substitute and rectifying declarations.

This declaration must contain the information indicated in Annex III and IV of R.S. 163-2018/SUNAT (*) taking into consideration the scheme and technical specifications published in SUNAT Virtual.

(*) This annex was modified by R.S. 188-2019/SUNAT.

Please note: You can make computer queries about the AEOI IR System by sending an e-mail to the following address SistemaIR-AEOI@sunat.gob.pe

Means and general conditions for submitting the Country-by-Country Report

The individual required to submit the declaration Country by Country Report must:

1. Go to the following site: https://aeoi.sunat.gob.pe

2. Access the IR AEOI system with your RUC number, user code and SOL password.

3. Enter the option: uploads/ CBC report uploads/ my CBC tasks. 

4. Enter the new report option and choose the “manual entry” option (if the information is entered directly into the system) or the “upload file” option (if the information is imported as an XML file, which must be prepared previously). 

5. Follow the steps indicated by the system in order to complete the declaration.

    

   To prepare the XML file and submit the declaration, the XML schema and the technical specifications referred to in Article 12 of R.S. 188-2019/SUNAT must be followed.

   The tax return is considered filed when the IR AEOI system issues the proof of filing.

   In order to submit the tax return, the obligated taxpayers must follow the instructions of the system.

f) Schedule to file the Master File and the Country-by-Country Report (CbC):

The Master File and the Country-by-Country Report (CbC) are filed in accordance with the due date schedule approved for the declaration and payment of monthly liquidation taxes corresponding to the September tax period of the taxable year following the one to which the declaration corresponds. 

Exceptional provisions for years 2017 to 2019:

By means of Superintendence Resolution No. 054-2019/SUNAT, the period for submitting the Informative Affidavit Country by Country Report corresponding to Years 2017 and 2018 were extended in certain cases, until the last working day of the month following the month in which SUNAT publishes on its website that Peru has approved the evaluation of the confidentiality and information security standard required by the Organization for Economic Cooperation and  Development (OECD) for the automatic exchange of information, the period for submitting the  Informative Affidavit Country by Country Report:

     1. Corresponding to the year 2017, to be submitted by taxpayers domiciled in the country, 

       members of a multinational group whose parent company is not domiciled and that are                        exclusively included in subclause 2 of subparagraph b) of article 116 of the Income Tax Law                Regulations.

     2. Corresponding to the year 2018, which must be submitted by taxpayers obligated under the             provisions of subclauses 1 to 3 of subparagraph b) of Article 116 of the Income Tax Law                       Regulations.

Likewise, in accordance with the provisions of Superintendence Resolution No. 155-2020/SUNAT. No. 155-2020/SUNAT, the periods for submitting the Informative Affidavit Country by Country Report corresponding to the year 2019 were extended in certain cases, until the last working day of the month following the month in which SUNAT publishes on its web page that Peru has passed the evaluation of the confidentiality and information security standard required by the Organization for Economic Cooperation and Development (OECD) for the automatic exchange of information, the period for submitting the Informative Affidavit Country by Country Report, corresponding to the year 2019, to be submitted by the taxpayers obliged according to the provisions of subclauses 1) to 3) of subparagraph b) of article 116 of the LIR Regulations goes in accordance with the Maturity Schedule, approved by the Superintendence Resolution N.° 054-2019/SUNAT and the unique article of the Superintendence Resolution N.° 155-2020/SUNAT.

Schedule of Deadlines – Master File and CbC Report - Year 2024

Schedule of Deadlines – Master File and CbC Report - Year 2023

Schedule of Deadlines – Master File and CbC Report - Year 2022

Schedule of Deadlines – Master File and CbC Report - Year 2021

Schedule of Deadlines – Master File and CbC Report - Year 2020

Reasons for rejection of the Country-by-Country Report

It is considered a cause for rejection when records with inconsistencies are detected in the validations of the XML schema Country-by-Country Report.

The XML schema validations and technical specifications can be consulted in the “Country-by-Country Report Information Registration” instructions.

Proof of submission

The proof of filing the declaration can be printed, downloaded as a PDF file and/or sent to the electronic mailbox of the obligated party.

Substitute or rectifying declarations

The obligated party required to submit the Country-by-Country Report declaration may substitute and/or rectify it, for which purpose must enter again all the required information in the IR AEOI system, including that is not to be substituted or rectified. In order to submit the substitute or rectifying declaration, the regulated entity must follow the procedure established in subparagraphs a, b and c of subclause 14.1 of article 14. Then choose the option “corrections” and enter the corresponding information following the indications detailed in such system.

Replace the file 1 XML Information on Operations of Annex III; the item Business Activities (BizActivities) of section D and the item Reporting Entity (ReportingEntity) of section F of the file 2 XML Information CBC report of Annex III and Annex IV of the Superintendence Resolution No. 163-2018/SUNAT in accordance with Annex I of this resolution.

• Test Files

• User’s Guide - Country-by-Country Report

• User’s Guide for Tax Administrations - CBC Report

      g) Instructions, Manuals and Guidelines:

• Instructions for Recording the Country-by-Country Report Information

• Country-by-country Report Manual for Effective Implementation 

• Guidelines for the elaboration and preparatrion of Country-by-Country Reports - Action 13 BEPS

   

       h) Related standards:

• Superintendence Resolution N° 163-2018/SUNAT - Annexes II, III y IV.

• Superintendence Resolution N° 264-2018/SUNAT.

• Superintendence Resolution N° 054-2019/SUNAT.

• Superintendence Resolution N° 188-2019/SUNAT - Annex

• Superintendence Resolution N° 155-2020/SUNAT.

Exchange of CbC Report information:

The complete information on activated exchange relationships between all participating jurisdictions, including Peru, is available on the OECD Country by Country Exchange Reporting Relationships webpage.  This includes details on the effective date of an activated agreement. It also lists non-reciprocal jurisdictions that will provide CbC Reports to a jurisdiction but have opted not to receive CbC Reports from a jurisdiction.

Exchange relationships of CbC Report

Please note that the updated list of jurisdictions with which Peru has activated agreements for automatic exchange of information related to the CBC Report can be consulted through the following file:

List of jurisdictions from which Peru may receive CbC Report information 

The information obtained from CbC reports is secure and will be used for high-level transfer pricing risk assessment, assessment of other risks related to base erosion and profit shifting (BEPS) and for statistical and economic analysis.

• Exchange relationships between countries
• Signatories of the Multilateral Competent Authorities Agreement on the Exchange of Country-by-Country Reports (CbC MCAA) and signing dates
• Multilateral Competent Agreement on the Exchange of Country-by-Country Rerports (MCAA)
• Country-specific information on the implementation of country-by-country reports