What you need to know about the current transfer pricing system in Ecuador

The transfer pricing system regulates or controls the prices agreed and paid between related parties for transactions involving goods and/or services. Such prices should be similar to those that would be agreed by independent parties (market prices) on the same conditions and terms. Who must submit the Annex on Operations with Related Parties and the Comprehensive Transfer Pricing Report? All income tax payers not exempt under the transfer pricing system[1] according to the cumulative value of operations within the relevant fiscal year, as follows: Filing obligations Operations with related parties (value exceeding…) Annex on Operations with Related Parties US$3,000,000 Comprehensive Transfer Pricing Report US$15,000,000 However, the Tax Administration may request […]