Mexico at the forefront in LATAM in Transfer Pricing

Mexico at the forefront in LATAM in Transfer Pricing

Currently, in Latin America there are 20 countries with Transfer Pricing legislation, in 11 of them there is a constant control activity, with great intensity in Colombia, Argentina, Ecuador, Peru and Mexico, and in the rest there are already jurisprudence in The matter.

A constant in the region is the addition of its own criteria to the foundations of the OECD, such as broader connection criteria, the concept of materiality, mandatory use of the interquartile range in the cases of Mexico and Peru, local reports with additional elements, analysis of intercompany operations between national companies (Panama, Mexico, Colombia and Peru), and the obligation to present information returns, among others.

During 2021, Mexico enacted important reforms to be applied in this matter as of 2022, some of them bring legal certainty to taxpayers and some others an excessive administrative burden; however, we can express that all the reforms that have taken place from 2016 to 2022 put our country once again at the forefront in the region in Transfer Pricing and, with it, the opportunity to continue receiving foreign investment with legal certainty in this matter. .

To review, design or document intercompany transactions in Mexico and Latin America, at Baker Tilly we have professional and multidisciplinary teams that support multinational groups, with an adequate regional vision.

Agustín Espino Vergara, partner and leader of the Transfer Pricing practice for LATAM at Baker Tilly.