Guatemala has passed transfer pricing legislation, effective January 1, 2013, which will govern related-party transactions involving goods, services or intangible assets. The new rules, included in the country’s Tax Legislation Update Law (TLUL), generally adhere to the OECD’s guidelines by establishing the arm’s length principle and related parties, regulating the criteria each taxpayer must follow in performing a comparability analysis, and specifying acceptable transfer pricing methods. Taxpayers will be required to document their transactions with related parties on an annual basis and must submit transfer pricing documentation within 20 days of the tax authority’s request. Advance Pricing Agreements (APAs) can be requested on an ongoing basis, for a maximum of four years.

Related Links:

(a) TPweek
(b) Deloitte
(c) Ernst & Young – Tax Alert