On December 30, 2021, the Undersecretary of State for Taxation (“AT” or “SET”) published General Resolution No. 108/21, which brought the following news
- The PAPT Registry, namely the Registry of Authorized Transfer Pricing Professionals (“PAPT”), is created for registering professionals interested in preparing the Transfer Pricing Technical Study (“ETPT”) for taxable subjects before the SET.
- Once the special module for said purpose is ready, registration will be done online through the Marangatu Tax Management System; in the meantime, applications must be filed at the SET office.
- Economists, accountants, business administrators, lawyers, as well as other similar professionals in the legal, economic, financial or business fields, can be registered.
- At the time of the request, the applicant must prove having completed at least 100 hours of training in transfer pricing in the last 5 years, being valid the courses taken in the country at institutions authorized by the Ministry of Education and Sciences or in foreign countries
- Also, a minimum of 4 years of general experience in taxation should be proven, or 3 years of specific experience in international taxation or transfer pricing.
- In addition, registration as single taxpayer registry (“RUC”) is required as well as being in good standing with tax obligations and having no criminal record that would prevent the subject from working in the field.
- Registration in the PAPT Registry will be valid for 3 years, renewable.
- A very important item here is given by the fact that providing external tax audit services directly or indirectly and transfer pricing services to the same taxpayer within the same fiscal year is established as incompatible.
- In such regard, it is understood that services are provided indirectly and to the same taxpayer when the PAPT provides professional services to a company or entity that in turn provides external tax audit services to said taxpayer.
- The following obligations are established for the PAPT:
- To keep strict confidentiality regarding all disclosed data and information on the taxable subjects and use it only for the preparation of the ETPT.
- To carry out the work by their own means, not being able to outsource or subcontract other professionals to perform all or part of the work involved in preparing the ETPT, except in the case of workers dependent on the same PAPT or if the report preparation requires a technical opinion on a specific topic.
- To prepare the Technical Study following the guidelines established in the regulations issued by the SET.
- To keep the Technical Study’s supporting documentation in digital format (PDF or similar) for the time limit of the Business Income Tax (IRE)
- Others obligations related to the nature of the tasks carried out as PAPT.
- In this regard, it is established that, although the PAPT is responsible before the client for its services, this may be sanctioned with suspension on the Registry for a term of 3 years or with definitive disqualification in case of reiterate infractions, prior verification of expressed bad performance of duties.
- Full list of professionals authorized by the SET, as well as suspensions and disqualifications, will be published and updated monthly on the website: www.set.gov.py
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