Share with your friends

Costa Rica: Draft guidelines for processing advance pricing agreements (APAs)

Costa Rica: Draft guidelines for processing APAs

The tax administration (Administración Tributaria) released draft guidelines regarding the procedures for processing advance pricing agreements (APAs).


Related content

The draft guidelines are contained in a draft resolution that is available on the website of the Ministerio de Hacienda and that is pending publication in the official gazette. According to the draft guidelines, the office responsible for processing and reviewing APA applications would be the Subdirección de Acuerdos Previos de Precios de Transferencia de la Dirección General de Tributación (SAPPT).

The draft guidelines state that APA applications would need to be addressed to the general tax office (Dirección General de Tributación) and submitted to the SAPPT office together with information required by resolution DGT-R-049-2019 in relation to Master file and Local file requirements.

Once approved, an APA would be effective for a period of five years (as determined under one of two methods):

  • The tax period in which the APA application is submitted and for the following four tax periods
  • The five years beginning with the tax period after the date of submission of the APA application

Notably, there is an article of confidentiality, stating that the information and documentation that is submitted by the taxpayer as part of the APA application would be for the exclusive use within the APA proceedings; thus, this information could not be used for other purposes.


According to the OECD Transfer Pricing Guidelines, an APA is formally initiated at the request of the taxpayer and implies a negotiation between the taxpayer and one or more related companies with one or more tax administrations. Under the APA process, the criteria for determining transfer prices are established, prior to the execution of an intercompany transaction, for a certain period of time. The objective of the APA process is to provide the taxpayer with an alternative with regard to challenges or responsibilities associated with transfer pricing issues. With an APA, the taxpayer is afforded a degree of certainty for transfer pricing compliance for intercompany transactions covered by the APA.

Read a December 2019 report (Spanish and English) [PDF 67 KB] prepared by the KPMG member firm in Costa Rica

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal