Peru Gazettes Decree Amending Income Tax Law on Transfer Pricing Valuation Methods

The Peruvian Official Gazette Sept. 24 published Legislative Decree No. 1663, amending the income tax law on transfer pricing valuation methods. The decree includes measures: 1) permitting alternative valuation methods where the enumerated methods are inappropriate due to either the nature of the transaction or a lack of reliable comparable independent transactions; 2) allowing the discounted cash flow method, the multiples method, the equity value method, or appraisals for market value determinations of unlisted shares or equity interests; 3) allowing the multi-period excess earnings method (MPEEM) for other transactions; 4) prohibiting the discounted cash flow method if the transferor holds ...