Publications of TP Consulting.



This work is the result of 15 years of practical experience, theoretical knowledge, multidisciplinary staff working at TP Consulting. The issue of Transfer Pricing (TP) is relatively new in Latin America. While most countries in the region follow the Organization for Economic Co-operation and Development (OECD) Guidelines, there are many particularities in each one that incorporates TP institutions into its legislation, as well as formal obligations , which make that in Latin America the international theory must be used, taking into consideration the particularities of the legislation of each country. The work is divided into 3 parts. In the first one, the general concepts of TP are presented, then the TP rules of each country are analyzed and, finally, the impact of BEPS (Taxable Erosion and Transfer of Benefits) with the TP in the Ibero-American region.

Resolution of the General Directorate of Revenue (DGI): Obligation to present the Transfer Price Information Statement for the period 2016 no later than June 2017


  • 1 Background


  • 1. On July 30, 2010, the National Assembly in Panama proposed the incorporation of a new regime to the Fiscal Code. This new regime of "transfer pricing" is intended to prevent multinational groups distort prices of transactions with Panamanian subsidiaries, eroding their tax base and affecting the Panamanian collection.


  • 2. Recently, Law 52 of 2012 modified the regime of transfer prices in Panama, expanding the scope of application of the same. That is, article 762-D of the Tax Code is amended, which originally, as contemplated in Law 33 of 2010, only obliged to comply with the transfer pricing regime to all those taxpayers who had transactions or transactions with Its related parties who are tax residents of those countries.


  1. Taxpayers who must present the Information Statement


  • 1 This regime covers any transaction that a taxpayer makes with related parties who are tax residents of other jurisdictions, provided that such transactions have effects such as income, costs or deductions in the determination of the taxable income for purposes of income tax. (Art. 762-D).
  • 2 As mentioned above, by Act 33 of 2010, it was required to comply with the transfer pricing regime only to those taxpayers who had transactions or transactions with related parties who are tax residents of those countries or contracting States with whom the Republic of Panama has in full force a treaty or agreement to avoid double international taxation in rent or capital
  • 3 Periodicity:


  • 1. The presentation of the Transfer Pricing Annual Informative Return is an annual basis.
  • 2. It must be submitted 6 months after the end of each fiscal period, of the report containing transactions with related parties.
  1. Penalties


  • 1. Failure to submit the report will entail the imposition of a fine of 1% of the gross amount of the total transactions carried out with related parties and presented in the taxpayer's Affidavit of Income
  • 2. The report is presented through Form 930 called "Transfer Pricing Report" adopted by resolution No. 201-6845 of June 15, 2012 and modified by resolution No. 201-162 of January 3, 2013.
  1. Conclusions and recommendations:


  • 1. If the taxpayer have transactions with related parties, it is essential to prepare the Transfer Pricing Annual Informative Return for 2016 tax periods in advance of the due date, June 2017.
  • 2. To avoid non-compliance in the delivery of any additional information requested by the DGI in the course of the audit proceedings, the fines set forth in Article 756 of the Tax Code will be applied:
  • $ 1,000 to $ 5,000 the first time;
  • $ 5,000 to $ 10,000 in case of recidivism;
  • Temporary closure of the establishment.



  Panamá, January 16, 2017

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