There is a new version of the form to be used by taxpayers to report their transfer pricing information.
The tax authority (Dirección General de Ingresos) updated the transfer pricing-related Form 930 (Formulario 930, “Informe de Precios de Transferencia”). The new, updated version of Form 930 is referred to as “Version 2.0” and is to be used to report information corresponding to tax year 2018 and for later tax years. For prior tax years, the previous version of Form 930 (“Version 1.0”) is to be used.
The transfer pricing report on Form 930 provides information about the taxpayer’s transactions with related parties as well as certain information about conditions under which the taxpayer agrees to transactions with other member group companies. This information reporting is viewed as a critical step in verifying that taxpayers are complying with the arm’s length principle.
The time for filing Form 930 is based on the filing of the income tax return (Declaración Jurada de Renta). The instructions for Version 2.0 of Form 930 do not allow for extensions of time or for corrections concerning the transfer pricing report; however, taxpayers may seek an “annulment” of the transfer pricing report by written request made to the tax authority. If the annulment is approved, the taxpayer must again submit the transfer pricing report that is due before the end of the expiration of the time for filing the report (that is, six months after the close of the tax year to which the transfer pricing report relates).
Version 2.0 of the transfer pricing report on Form 930 requests greater detail and a greater quantity of information than was requested by Version 1.0. Among the information items requested by Version 2.0 are the following:
The failure to submit a timely transfer pricing report (by the date that is six months after the end of the tax year) is subject to a penalty equal to 1% of the total amount of transactions with related parties, for a maximum penalty of B1 million (balboas).
Read a 2018 report (Spanish) prepared by the KPMG member firm in Panama
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