On 27 May 2019, through Executive Decree N° 46, the regulatory framework for the Country-by-Country report was established.
The incorporation of the Country-by-Country Report is part of the changes in Transfer Pricing, International Taxation, and Exchange of Information promoted and recommended in the Inclusive Framework of G20 and the OECD.
The aforementioned report is part of the 15 action plans against the erosion of the tax base and the transfer of benefits (Base Erosion and Profit Shifting - BEPS) that the OECD has been promoting since 2013 as a mechanism to combat global tax avoidance.
Within the 15 action plans, Action Plan 13 "Guidance on the Implementation of Transfer Pricing Documentation and Country-by-Country Reporting" establishes a comprehensive set of documentation for the analysis and report of transactions between related parties.
The aforementioned Executive Decree establishes:
It is worth noting that in Article 6, it is established that the DGI "shall ensure the confidentiality of the information contained" and "may not make use of the information contained in the Country-By-Country Report as a conclusive tool by itself for the determination of transfer pricing adjustments”.
Lucas Rodriguez Gregueli