Through Resolution NAC-DGERCGC17- 617 published on December 28, 2017 in Official Supplement Register 149, the Resolution of SRI 532 of 2016 was modified, which established aspect as maximum date of consultation, financial information to be used among other. The changes to this Resolution are as follows:
1. Maximum date for consulting financial information of the comparable:
| Resolution 532-16 | Resolution 532-16 as amended |
| literal a) del numeral 3 del artículo 2[…] se deberá utilizar la última información de terceros independientes disponible al último día laborable del mes de febrero del año siguiente al analizado, siempre que el cierre contable de dicha información haya sido posterior al 31 de agosto del año analizado. | literal a) of numeral 3 of article 2[…] The latest independent third-party information available as of April 10 of the year following the one analyzed should be used, provided that the accounting closing of said information has been after August 31 of the year analyzed. |
2. Regarding the methodology of segmentation of the financial information used
| Resolution 532-16 | Resolution 532-16 as amended |
| Literal d) of numeral 3 of article 2.d) Business segments.- The third-party financial information used for the analysis should not include different or additional business segments corresponding to the operations analyzed, which imply significantly different comparability criteria that influence the profitability margin. Otherwise, the technically segmented financial information must be presented, so that its effect is reasonably eliminated. | Literal d) of numeral 3 of article 2.d) Business segments.- The third-party financial information used for the analysis should not include different or additional business segments corresponding to the operations analyzed, which imply significantly different comparability criteria that influence the profitability margin. Otherwise, the technically segmented financial information must be presented, so that its effect is reasonably eliminated £ «no case will be accepted as valid segmentation based exclusively on a proportional criterion, for the application of the same factors to the items of a financial statement. |
3.Regarding the selection of the part analyzed or subject to review, and the jurisdiction of tax havens
| Resolution 532-16 | Resolution 532-16 as amended |
| New literals within numeral 3 of article 2.f) Selection of the analyzed part.- In order to support the selection of the analyzed part, when applying margin methods, the criteria of availability and quality of the information must be met. For the development of the transfer pricing analysis, the local part must be selected.In the event that the local part does not meet the previously detailed criteria, the analysis can be carried out with the other party, in order to calculate the profitability indicator.g) Comparables located in tax havens, lower tax jurisdictions and / or preferential tax regimes.- The selection of comparable ones may not include companies located in tax havens, lower tax jurisdictions and / or preferential tax regimes defined as such according to tax legislation Ecuadorian |
4. Justification of the comparability adjustments
| Resolution 532-16 | Resolution 532-16 as amended |
| Numeral 2 of article 32. Justification of the adjustments.- Any comparability adjustment must be made once the need for its application and the technical reasonableness of both its formulation and its effect on improving the degree of quality have been established in a qualitative and quantitative manner. comparability between the economic situation of the operations analyzed and that of the comparable ones. The corresponding quantitative demonstration must be carried out in as much detail as possible, indicating the effect on the price or indicator used and, if applicable, on the range of full competition. | Numeral 2 of article 3 replaced by:2. Justification of the adjustments.- The adjustments of comparability (accounting, capital or others) must be made once the need for its application and the technical reasonableness of both its formulation and of its effect in improving the degree of comparability between the economic situation of the operations analyzed and that of the comparable ones. The corresponding quantitative demonstration must be carried out in as much detail as possible, indicating the effect on the price or indicator used and, if applicable, on the range of full competition.For the consideration of accounting adjustments to the information of the analyzed party or of the selected comparables, the reference to the accounting practice, principle or standard by which the application of the adjustment is necessary must be justified. |
It is important to note that the analysis of transfer prices locally is regulated extensively and in detail; Therefore, although it is not possible to know compliance with all the rules, it is important that the Taxpayer is aware of the formal requirements of the transfer pricing analysis so that he can verify them in his transfer pricing report. . This is the main reason why we keep you up to date on all changes in the subject.
