Within the context of globalization, the related parties stand out, multinational companies that have operations beyond their country of origin, because their strategic direction is oriented towards a world market and the increase of their margins of utility.
The principle of free competition, governs companies with related parties, to determine if they buy and/or sell products and services within the group, with prices lower or higher than those of market value.
Transfer prices arise from the need to reduce disputes between the Tax Administrations, as well as those existing between these Administrations and the multinational companies in each country, avoiding costly litigation.
As of January 1, 2016 the "Special Rules for Valuation between Related Parties" are in force again, that is, the Transfer Pricing regulations that were included for Guatemala for the first whose regulations were subsequently published in May 2013 through Governmental Agreement 213-2013 Law".
Thus, transfer pricing rules are in force in Guatemala from January 1, 2013 to December 20, 2013, date on which Decree 19-2013 of the Congress of the Republic of Guatemala was published, in which it temporarily suspends the application of the same, indicating that on January 1, 2015, they again become effective.
Transfer prices are significant for Guatemalan taxpayers who carry out transactions with their related parties abroad because they largely determine income and expenses, hence taxable profits, as of January 1, 2015.
At RSM we have large experience in the provision of professional transfer pricing services, to achieve this we have an interdisciplinary team, dedicated exclusively to provide timely solutions to this challenging legal requirement.
Our line of Transfer Pricing Services includes:
Tax planning with a focus on transfer pricing
- Pricing transfer studies
- Support in the preparation of the related party statement, or other management requirements on transfer pricing
- Restructuring of operations
- Analysis of possible contingencies in relation to transfer prices
- In-house training in transfer pricing
- Advance price agreements with the Tax Administration.