1. THE URUGUAYAN EXPERIENCE IN THE IMPLEMENTATION OF THE TP
General Tax Directorate of Uruguay
Regional Seminar “Multinational taxation & transfer pricing”
Port of Spain/ Trinidad andTobago
10-12 June, 2014
Cra. Marcia Grostein – Responsible for the Department of international taxation - large taxpayers Division

2. Decree No. 337/011 creates the Department of international taxation (DFI) within the Large Taxpayers Division
Its purposes are:
Analyze the requests for certificates of residence for tax purposes and authorize its issuance
Promote the adequate fulfilment of international conventions
Assist and support the Department for the control of large taxpayers and the Control Division on international taxation matters
Analyze and advise in the field of international information exchange, monitor the effective implementation of the relevant provisions and to collect information when appropriate

3. Human Resources and DFI Functions
Auditors and consultants Profile
Monitor the compliance of TP rules, international taxation and the DTCs
Provide advise in TP rules, on the correct application of the DTC and on international taxation rules in general, to taxpayers and to the internal request of the Administration
Report on requests for Exchange of information received and sent.

4. An Overview to the DFI The DFI has the following tools :
Application procedure and approval of residence tax certificate
Procedure for the purposes of applying for an APA
Procedure for the exchange of information
Transfer Pricing Handbook
Handbook on the relation between main office-PE

5. Subjects and included operations
TRANSFER PRICING
Subjects and included operations
Applicable regulations: Art 1º Dec Nº 56/009 y Art 1º Dec Nº 392/009
Who: Taxable persons of IRAE and personal services outside the dependency ratio achieved by IRAE by choice or mandatory inclusion.
By operations
With whom?
Related entities abroad
Entities from countries with no or low taxation regimes
Entities located in customs exclaves benefiting from a regime of low or no taxation

6. TRANSFER PRICING Related
Applicable regulations: arts. 39º and 40º T4 TO 1996, art.1 and
2º, Dec. Nº 56/009, art 1º, Dec. Nº 392/009, Number 1)
and 2) of Res. DGI Nº 2084/009 and No. 1) of Res. Nº
819/010
According to the above regulations the relation may be:
Real: may be by capital, functional influences and others
Alleged relation: transactions with countries and regimes of low or no taxation and customs exclaves benefiting from a regime of low or no taxation
Operations carried out through intermediaries

7. FORMALITIES Taxpayers compelled to present the annual information
Through the provisions of paragraph 10 of the resolution No. 2084/009 and Nº 745/011, The General Tax Directorate determined who should submit the annual information relating to transfer pricing.
These are those taxable persons included in article 1 of the Decree No. 56/009, that verify any of the following conditions:

8. FORMALITIES Taxpayers compelled to present the annual information
Performing transactions included the present regime by an amount greater than approx dollars in the corresponding fiscal period
Should have been notified by the General Tax Directorate
Transactions carried out by the users of the free zone are exempt as long as they are not taxed by the tax on the income from economic activities.

9. FORMALITIES Mandatory information to be submitted
With the purpose of verifying the prices of the operations carried out by the taxpayers identified above, the General Tax Directorate requires the annual submission of:
Informative affidavit where the detail and amounts of transactions of the period included in the transfer pricing regime is reported
Copy of the accounting statements for the corresponding fiscal exercise, when no other dispositions mandate to present them
Study on Transfer Pricing
Paragraph 11 of Resolution No. 2084/009 sets out the minimum data that the referred study should include.

10. FORMALITIES Mandatory information that must be submitted
Content of the Transfer Pricing Study: The study on Transfer Pricing shall include - as a minimum - the following aspects:
The detail of the activities and functions performed.
The risks involved and the assets used to perform such activities and functions.
The details of the components, documentation, circumstances and facts valued for the above-mentioned study.
 Detail and amounts of the operations included in the Transfer Pricing regime.
Identify the entities with which the transactions were carried out included in the transfer pricing regime.
Method used for determining the price of the operations, explaning the reasons that justify why it was the most appropiate to be used, as well as the reasons why others were not used.
Identification of each of the selected comparable in order to justify transfer pricing.

11. FORMALITIES Mandatory information that must be submitted
 Identification of information sources on which the comparables were based.
Detail of the comparables that were rejected and grounds for their elimination.
Quantification and methodology used to practice the necessary adjustments on the selected comparable entities.
Determination of the median and the interquartile range.
Description of the business activity, its characteristics, and other relevant elements of the comparable entities.
Conclusions of the study.
 When the comparative analysis and justification of transfer pricing is performed on base of elements located abroad, they must comply with conditions stated in Article 5º of Decree Nº 56/009 of January 26,

12. Information Statement Form. 3001
Data to be reported in the Statement
Item 1 – Identification
Name of the entity
RUT number: This is the number that the D. G. I. grants to the entity at the time of registration.
Period.
Item 2 – Description: Detail the activies carried out by the company.
Item 3 – Information
1) Operations: Select the line number that corresponds to the
Operation. It should also detail the operations with related companies even though the amount is zero and it does/or does not need an appropriate adjustment.
2) Amount of operation by related company: enter the total amount in Uruguayan pesos, of the operation indicated in the previous line with the related company, identical operations, same country and method should be grouped

13. INFORMATION STATEMENT Form 3001
3) Related companies: enter the name or name of the related company.
4) Country invoicing: Select country or the Uruguayan free zone of the invoice’s emission or destination.
5) Country Goods and Services: select the country or the uruguayan free trade zone of origin or destination of the goods or services.
6) Adjustment method: select the adjustment method used.
7) Amount of the adjustment: Enter, if applicable, the full amount of the adjustment according to point 2).
Item 4 – Summary
Item 5 – Cuestionnaire

15. Search Samples Total universe SIC Codes Quantitative filters
Qualitative
filters
Orbis
5122
SIC
primary
Insufficient
information
Losses in two
consecutive years
or average
I+D/sales above 5%
Advertising/sales
above 5%
Under liquidation
Different activities and market
More than 50
million
Accepted
101
Accepted 23
comparables final Set 5

18. Thank you very much!!