paraphrase and summarize this into two paragraphs with 5 lines each The General Directorate of Taxation issued
Question:
paraphrase and summarize this into two paragraphs with 5 lines each The General Directorate of Taxation issued a decree since 2013 that requires taxpayers who carry out transactions with related parties and comply with the established requirements, to document the form and procedures in which transfer prices were determined, through a price study. of transfer, but did not establish a deadline for its declaration. However, with the recent incorporation into the OECD, it is important to know the measures that Costa Rica has taken. In August 2021, the DGT began a massive notification process to taxpayers specifically established under the Free Zone Regime in the manufacturing sector. These requirements were regarding the transfer pricing documentation corresponding to the fiscal years 2018 and 2019. Therefore, it is important that taxpayers who maintain operations with related parties resort to carrying out the evaluation and documentation of transfer pricing, at least for the last 4 fiscal years, according to the current limitation period. Although the DGT has not yet given any update on the date when the transfer pricing declarations will be submitted, it has made information requirements, as mentioned above, and may require taxpayers at any time to provide all the information required. in this regard, as part of its control plans, and if it detects any deviation from market prices, it may make the corresponding adjustments. All of the above makes it clear that enabling the portal to file the declaration will be only the next step, and does not exempt taxpayers from having the documentation. Not having the documentation in response to a DGT requirement may cause a financial penalty of 2% of the gross income for the period in question, with a minimum of three base salaries and a maximum of one hundred. All of the above is summarized in that it is vitally important for obligated taxpayers to have transfer pricing documentation to face the new regulatory era that our country will implement as part of its entry into the OECD.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill