El Salvador Unveils New Transfer Pricing Return

by Mike Godfrey, Tax-News.com, Washington

27 February 2014

El Salvador's tax authority (DGII) has published a new Form 982 for transfer pricing returns. The form can be downloaded from the tax authority's website.

The new Form 982 now includes section C, which requires information on supporting documentation about transactions with low-tax jurisdictions. Section B already required details regarding such transactions, including a description, amount, and transfer pricing method. The form did not previously include a documentation requirement.

There is no need to attach this documentation upon filing the return, but taxpayers must specify whether they have a transfer pricing study and documentation in accordance with Salvadorian regulations. There is a requirement to indicate who is responsible for the preparation of the documentation as well, i.e. the taxpayer itself or a third party.

The new form 982 is effective from the 2013 tax year, requiring that it must be first filed by March 31, 2014.

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