Intragroup Services - Benefit Test
According to the OECD Guidelines, to speak of an intra-group service it is necessary that there is an economic or commercial interest for the entity receiving this service and that the fact of receiving such a service means a benefit in its commercial position.
In this regard, it is important to note that the transfer pricing regulations of several countries in the region have incorporated the “Test de Beneficio”, in which companies are obliged to provide the documentation and information requested by the Tax Administration, as necessary conditions for the deduction of the cost or expense resulting from the provision of intragroup services.
The “Test de Beneficio” will be fulfilled when the service provides economic or commercial value for the recipient of the service, improving or maintaining its commercial position. In this way, the taxpayer shall document and provide information demonstrating the actual provision of the service, its nature and the real need for the service, the costs and expenses incurred by the service provider, and the reasonable criteria for allocating such costs and expenses.
We provide the service of review and evaluation of all operations of “intragroup service” to be prepared for the fulfillment of the Test de Beneficio (TB), additional to this requirement for the deductibility of costs and expenses from this type of operations.
|To be accredited||Documentation|
|Effective provision of service||– Detailed contract documents (contract).|
– Results reports.
– Compliance reports.
– Work plans, implementation plans.
– Corporate strategy.
|Nature of the service provided||– Financial, technological, scientific, mining, commercial, among others.|
|The actual need for the service|
– Impact of the service on improving the operability of the service receiver.
– The service can produce a potential advantage (medium or long term in the utility of the receiver).
|Costs and expenses incurred by the service provider||– Identification of costs.|
– Identification of expenses.
– Identification of the markup (margin).